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REPLY 



OP THE 



TRUSTEES OF UNION COLLEGE, 



TO 



CHARGES BROUGHT BEFORE THE ASSEMBLY OF NEW-YORK, 

March 19, 1850; and before the 

0mate, on i\}t 12tl) of ^Aptxl, 1S51, 

By the Hon. J. W. BEEKMAN. 



This reply was prepared and nearly all printed previous to the 
Meeting on the 1st of March, 1853, of the Commissioners 
appointed to examine and report on the charges against 
Union College and its officers, and would have been presen- 
ted to them, had they allowed the College and its officers to 
/ ,-? be heard in their defence, previous to the majority sending 
'iL^t l^in with their sanction to the Senate, the exparte statements 
"^r T of the accountant employed by 



them. The resolution ap- 
pointing them, contemplated such a hearing of the parties 
accused ; it was twice claimed by the trustees ; it was repeat- 
edly promised by the Rev. John N. Campbell, chairman of 
the commission, but was, notwithstanding, refused 5 and a 
mass of matter, of which the trustees and officers were 
wholly ignorant and which they never were allowed to ex- 
amine, was sent forth to the world, to prejudice them and 
induce the worst impressions of their official conduct. 



ALBANY: 

CHARLES VAN BENTHUYSENj PRIKTER. 

No. 407 Broadway. 
1853. 



Vlfci s n 



2-?> 



THE TRUSTEES OF UNION COLLEGE, 

To the commissioners appointed to examine the charges 
made by Senator Beekman. 



Union College, ? 
Schenectady^ July 23, 1851. \ 

Gentlemen, — The undersigned have been appointed by the 
Trustees of Union College to attend before you and assist in the 
investigation of charges wliich have been made and extensively 
circulated, and wliich are calculated to impair tlie confidence of 
the public in the institution, and to injuriously affect the reputation 
of its venerable and distinguished President. Believing, as the 
Board of Trustees do, that these charges have no foundation in 
truth, they are anxious that a speedy as well as full examination 
of the subject should be had. We therefore request that the 
earliest practicable day should be appointed by yon to commence 
the investigation, and that all the investigating commissioners 
should attend thereon. We also desire to be informed of the time 
and place of meeting, and that the members of the Senate commit- 
tee by whom tlie charges have been brought before the public, 
should also have notice, and that they be requested to furnish you 
with the evidence upon which their report w^as based, and the 
sources of information to which you are to apply for evidence in 
support of the charges contained in their report. 

Permit us to suggest that if the convenience of the commission- 
ers should render it necessary to carry on the investigation at 
any place other than the College, tliat such investigation may take 
place during the present vacation, as it will be necessary that 
several officers of the College should be present to give the requi- 
site explanations of complicated accounts which have run through 



more than half a century, and such officers cannot be spared from 
their duties from the College during the collegiate terms, to attend 
the meeting of the commissioners at any other place without 
serious detriment to the institution. 

We are with respect, yours, &c., 

R. H. WALWORTH. 
R. M. BLATCHFORD. 

A. HUNT. 

B. R. WOOD. 

Revd. Dr. John N. Campbell, Philo C. Fuller, L. S. Chat- 
field, Ph. Van Rensselaer, David Buel, Jun., Esqrs. 

Commissioners. 



Rev. Dr. Campbell's Letter. 

Caldwell, Lake George, ) 
Jiugust I J 1S61. I 
Rev. Dr. Nott, 

Sir — The commission appointed by the Senate to examine into 

the affairs of Union College, and report upon the same to the 

next Legislature, have resolved to enter on the duty assigned 

them, by the examination of the account books and vouchers of 

the College. 

Mr. Van Derheyden has been appointed tlie accountant of the 
commission, and is hereby authorized to receive said books and 
papers at the State Office in Albany. Be pleased to deliver them 
to him on his presentation of this order. 
By order of the Commission. 

Very respectfully, 

J. N. CAMPBELL. 

Rev. Dr. Nott's Answer. 

Union College, ? 
September 12, 1851. ] 

Rev. and dear sir — I have delivered the books and papers, as 

desired, to Mr. Van Derheyden, wlio has just called for the same, 

and have only to regret, in doing so, that the legal members of 

the Board have given it as their opinion, that the examination of 



the same ought to take place at the College. And considering 
that these books contain a statement of tlie property entrusted to 
the care of the Trustees, and considering the irreparable injury 
their loss or mutilation would occasion, have also given it as their 
opinion, that the Trustees would not be justitied m allowing the 
same to go out of their possession. In this opinion, with a single 
exception, the other Trustees acquiesced. 

Still, as no formal resolution was passed inhibiting their deli- 
very, I have not felt under obligation to refuse a compliance with 
your requisition. And though I am myself aware that the exa- 
mination of transactions of sixty years standing, away from the 
place where the same were transacted, and apart from all those 
who have any knowledge of the said transactions, must be attended 
with great inconvenience, and may lead to unavoidable mistakes, 
still, in so far as I have had any connection with these transac- 
tions, I am glad that this is to be the case. I am quite willing 
to concede to those who have imputed a misapplication of funds, 
all the advantage in discovering such misapplication, which the 
most rigid scrutiny can afford, even in the absence of the party 
concerned. With so much of these transactions as have been 
made matter of complaint, I am familiar. If there be a wrong 
here, I am chiefly responsible for it, and shall hold myself in 
readiness to respond to any charge which may seem to be called 
for by even an ex parte examination.* 

Very respectfully, yours, 

ELIPHT. NOTT. 
Rev J. N. Campbell. D. D. 



* During the infancy of Union College it does not appear that any regular books were open- 
ed. Be this as it mav, none were found when the writer of this became connected with the 
College. The accounts, however, appear to have been duly audited, and certificates of those 
audits have been preserved. 

This omission would render it extremely difficult to trace all the transactions which took 
place between the College and the many individuals with whom it did business at that early 
day. No such difficulty, however, will be found to exist with respect to funds derived from 
the State. These have, for the most part, been received at a later period, and full accounts 
have been kept thereof in a fund book provided for that purpose, which fund book has, among 
other books, been delivered to Mr. Van Derheyden. In this book, separate accounts will be 
found to have been opened with each several act in which any grant has ever been made to 
Union College. These accounts will exhibit at a single view a full and accurate expose of all 
moneys received under each act, with the application made thereof. In the same fund book 
will be found a detailed exhibit of the present state of all the permanent funds. So that it is 
believed that it will occasion the Commissioners little trouble to ascertain the amount and 
application of all the grants ever made by the State, and the present condition of the perma- 
nent funds. E. N. 



Letter from Philip S. Van Rensselaer. 

^'ew Ha^lburgh, Dutchess Co., July 2Sth. 1851. 

Hon. Messrs. Walworth, Blatchford, Hu^t, ATccd, Cu-minittee, 
^x.j Trustees Unioji College. 

GrE^'TLEMEN — I leceived on Saturday last the comnmnication you 
addressed me as one of the commissioners appointed by the Senate 
to " perform certain duties in relation to the pecuniary affairs of 
Union College," requestii]g that tlie investigation should take place 
at the earliest practicable day, and apprising me tliat you liad been 
appointed by the Trustees of Union College to attend before the 
commission and to assist in the investigation. 

Very fully coinciding with you in the views you liave expressed 
as to the propriety of a speedy as well as full investigation of the 
"charges made,*' and which I need n<jt assure you I trust may 
result as you anticipate, I hasten to inform you that I shall by to- 
day's mail transmit a communication to tlie Rev. Dr. Campbell, 
apprising him of my willingness and desire to enter at once upon 
the duties assigned to the commission, and at such place as may be 
most agreeable to the other members of it, without reaa]'d to nn self. 
Very respectfully, P. S. VAN RENSSELAER. 

Letter from David Buel, Jr. 

Troy, July 2bt/c,18bl, 
Gentlemen — I have received your communication dated 23rd 
instant. I have had no communication with any of the gentlemen 
appointed by tlie Senate to investigate the pecuniary affairs of 
Union College, and am unable to name a time when the commis- 
sioners will act in the business. 

I am under the necessity of taking an excursion with a part of 
my family for the benefit of our health, and expect to be absent 
until about the middle of August. On my return I shall probably 
be ready to attend a meeting of the commissioners. I expect to 
leave home on Tuesday of next week. 

I am with much respect vours, &c., 

DAVID BUEL, Junr. 
To Messrs. R. H. Walworth, R. M. Blatchford, A. Hunt & 
B. R. Wood, Committee^ ^x. 

Letter from the Attorney-General's Clerk. 

Attorney-General's Office, July 24M, 1851. 
Hon. R. H. Walworth : 

Dear Sir — The letter of the committee appointed by the Trustees 
of Union College to attend before the committee appointed by the 
Senate to investigate the affairs of said College, of Avliich you are 
one, is received. I thought it proper for me to advise your com- 
mittee, through you, that the Attorney-General is absent from tlie 
city, and is not expected to return until about the 4th of August. 
I will call his attention to vour communication as soon as he returns. 
Very respectfuhy your ob't serv*t, W. BAMBER. 



REPLY 

Of the Trustees of Union College, to the charges brought 
before the Senate on the 12th of April, 1851, by the 
Hon. James W. Beekman, and before the public in the 
Albany Morning Express, May 8th, 1851. 



To tlie Hon. the Attorney-General, the Hon. the Comptroller, 
tlie Re7. Dr. Campbell, tlie Hon. David Buel, and Philip S. Van 
Rensselaer, Esq., Commissioners appointed by the Senate on 
the 2Sth of June last, to examine into the fiscal condition of 
Union College, this memorial of the trustees of Union College 

Respectfully Sheweth : 

That having had their attention called to an article in the 
Albany Morning Express, in the words following — ^^ A report of 
the committee''' (of the Senate) " who examined into the financial 
condition of Union College has been left with us for distribution : 
persons desirous of investigating a beautiful speculative scheme^ 
can be accommodated with the material by calling at our office •j''^ 
and not having been previously aware of any examination into the 
financial condition of Union College by any committee of the Senate 
having taken place, or even heard of the appointment of any such 
committtee for tliat purpose, they requested of the editor of the 
Express to be informed wheri and where and by whom this examina- 
tion was made^ and by whom this report was left for distribution. 
And having done so, they learned that the report in question, in 
place of being " the report of a committee who had examined into the 
financial condition of Union College^'' as stated, was merely a gratui- 
tous ex parte report, made on the financial condition of Union Col- 
lege by the Hon. Senator Beekman, on his own responsibility, as 
chairman of the literature committee, and unknown to the College. 

To the charges contained in this report, and in the article 
predicated on it, pubhshed in the Express of May 8tli, 1851, an 
answer was prepared by the resident trustees, which answer 
having been submitted to the other trustees, at a meeting held at 



6 CHARGE I. " THE TRUTH HAS BEEN CONCEALED- ^ 

tlie office of the Secretary of State, June 27tli5 was by them ap- 
proved and directed to be pubUslied. The publication, however, 
was suspended at the instance of the president, who presumed 
that the Hon. Senator Beekman would, on the presentation of the 
memorial of the trustees to the Senate, make the amende honorable 
for so unfounded and uncalled-for an attack on Union College. 
The Hon. Senator, however, on the presentation of said memorial, 
reasserted the charges previously made j and then as reported in his 
published speech, added. That 

Charge I. 

" He felt it his duty to say^ that he knew the half was not yet 
toldj^^ and that '*' the truth had been concealed and Jcept out of sight j 
with art and skill, by the managers of the College FundP 

Answer. 
If the Hon. Senator means by this, that the half had not been 
told The Public, in relation to the amount and intended applica- 
tion of the fund in question— a fund instituted by the liberality, 
and accumulated exclusively by the agency of the President of 
Union College, it is readily admitted. And what even now is said 
in relation thereto, is said contrary to the urgent remonstrance ol 
the only donor to said fund, by whom the unnecessary publication 
of deeds of charity has not been deemed incumbent on a christian. 
But when the Hon. Senator adds, " the truth has been kept out of 
sight, with art and skill, by the managers of this fund^"^ if he means 
to assert that " the truth has been concealed by the managers" 
(manager, for the President has been the only manager) from the 
Trustees of the College, from the successive committees who have 
been appointed to examine, from the Hon. Senator himself, or from 
any one else who had a right to be informed, then he means what 
is at variance with his own published statement at the opening of 
his report to the Assembly, March lOtli, 1850, entirely at variance 
with the published statement of R. H. Pruyn, Esq., on the same 
subject, not only, but also entirely at variance with the facts of the 
case. 

For the proof of this see Appendix A. p. 29. 

The Hon. Senator has in his possession, documents furnished 
Mm by the president containing a statement of every payment 



CHARGE II. "MISAPPLICATON OF FUNDS." 7 

of every kind ever made by Yates & Mclntyre to Union College, 
either through its treasurer or its president, and even of every 
payment of every kind ever made to the president on his individual 
account, with the date and amount of such payment, from May 
31st 1823, when the schedules furnished by the Hon. Senator com- 
mence to tlie 15th of December, 1835, wlien they end. And the 
Hon. Senator is now notified, that he is invited to furnish to the 
Commissioners a single item ever paid by Yates & Mclntyre to 
the President for the college, or to him on his individual account, 
not contained in the statement voluntarily furnished by him to 
Senator Beekman, and to every other member of that committee to 
which he belonged. 

The charges made originally by tlie Hon. Senator, which on the 
authority of his report had been spread before the public in the 
Express, having been re-asserted, the board of trustees at their 
annual meeting in July, referred the answer to said charges which 
had been prepared by the resident trustees " to the finance com- 
mittee, to amend and publish at their discretion." 

The finance committee supposed that if an early opportunity 
should be afforded for answering said charges before the Com- 
missioners, viva voccy any other a,nswer might be unnecessary ; 
but as this has not been the case, and as considerable time may 
yet elapse before such opportunity can be afforded, the presenta- 
tion of some documentary information seems at length to be due 
to the Commissioners if not to the public. Said committee have 
therefore directed the treasurer to furnish each of the Com mis 
sioners with a copy of said reply ; and that the merits of the 
case may be fully and fairly presented, to accompany the same 
with the report of the Hon. Senator Beekman, entire, (with notes 
and references. (See Appendix H. p. 83.) 

Charge H. 
In proof " that Dr. Kott has been in the habit of employing the 
funds of Union College in his own private speculations ^^'^ (it is said,) 
" here is an instance of misapplication. The sum of $17,500, received 
from Yates ^ Mclntyre^ was expended^ as stated by the treasurer of 
the college on Br. JYotfs lands at Stuyvcsant Cove.^^ 



8 ANSWER TO CHARGE II. 

The discovery of this imputed misapplication of funds, is stated 
by tlie Hon. James W. Beekman, to liave been made during a 
personal examination into the fiscal condition of Union College, on 
the 24t]i day of ]\Iay, 1849. {See his report to the Assemlly^ March 
1 9//i, 1 8 50 ; _pp. 44 and 48 . ) He now transfers from that report to the 
Assembly, (March 19t]i, 1850,) to this report to the Senate, (12th 
April, 1851,) this same charge, and reindorses it as having been 
found, among other charges, on re-examination to be ^'^ fully sus- 
tained by the facts of the case?^ Thus reindorsed, this charge is 
transferred from tlie pages of this report to the columns of the 
Express in the terms above quoted, and published under tiie sanc- 
tion of the same Hon. Senator's name a second time to the world. 
And that witliout an intimation that its entire incorrectness 
had been pointed out by the treasurer of Union College in his 
report to the Assembly, April 8th, 1850,— and so fully exposed 
that that honorable body declined taking any further notice of it. 

Having thus repeated and re-indorsed this charge in the terms 
in which it was originally made, and in which it was transfer- 
red from his own report to the columns of the Express, the 
Hon. Senator introduces into this same senatorial report, two 
letters obtained from the private correspondence of A. Alclntyre, 
Esq'r. Both of these letters, as will be seen, were written long 
before the 2Uh of May^ 18^9, on which day, tlie Hon. Senator, 
according to his own statement, made the discovery that this 
"$17,500 received from Yates 4^ Mclnfyre^ was expended on Dr. 
JVott'^s lands at Stuyvesajifs Cove?^ But neither of tliese letters 
seem to the Trustees, to justify the new phase, wliich is subse- 
quently put on tliis transaction, in this same report, as follows : 
" It appears to the committee on literature.^ a somewhat strange 
application of so large a portion of the permanent fund^ to 
employ $17,500 for the payment of Professors'' salaries ^ No 
wonder that it should appear strange to tlie committee on lite- 
rature, that the same $17,500 expended on Dr. Nott's lands at 
Stuyvesant's Cove, should all have been employed for tlie payment 
of professors' salaries. Nor will this statement appear less strange 
when it shall be known that this $1 7,500 had not been applied 
to either of these purposes, but that tlie same was, at the time 



CHARGE III. "|802j323. 28 PAID UNION COLLEGE." 9 

the senator made his examination, May 24t]i, 1849, ]ying as 
stated by the Treasurer, on interest in New-York, with Stillman, 
Allen & Co., waiting investment, as will appear from the following 
affidavit : — 

" City^ County and State ) 

JYew-York: \^^' 

"I, Robert M. Stratton, of the city of New- York, do solemnly 

affirm and declare, tliat I am a member of the firm of Stillman, 

Allen & Co., of said city, owners and proprietors of the Novelty 

Iron Works, commonly called the " N'ovelty Works," and tiiat 1 

have tlie entire charge and management of the financial business 

of said firm. 

^•That on the fifth day of May, in the year 1849, I received 
from Charles Yates, his check on the Merchants' Exchange Bank 
of this city, certified by said bank, for the sum of eighteen thousand 
four hundred seventy-two dollars and eighty cents ($18,472.80,) 
which sum was received by me on deposit, and placed to the credit 
of Union College, of tlie towm of Schenectady, subject to the order 
of the treasurer of said college. 

" That there was drawn for and paid by me to the treasurer of 

said college, Alexander Holland, previous to the 24th day of May, 

1849, the sum of two thousand seventeen dollars and fifty cents. 

That on the said 24th day of May, 1849, there remained in my 

hands to the credit of said college, the balance of said deposit, 

amounting to the sum of sixteen thousand four hundred and 

fifty-five dollars and tliirty cents, all of which was subsequently 

repaid by me to said college, with interest thereon. 

" R. M. STRATTON " 

"Affirmed before me this 20th 1 
day of August, 1851, ) 

Neil Gray, Commissioner of Deeds " 

Charge hi. 

It is said to appear ^^from the books of Yates & Mclnfyre^ that 
they paid in cash to Dr. Kott^ for Union College^ from the Z\st 
iay of March, 1823, to the lUh of December, 1835, $802,323.28." 



10 ANSWER TO CHARGE III. 

From this it would seem, that in order to ascertain the finan- 
cial condition of Union College, this committee of the Senate, in 
place of examining the books of said institution, examined the 
books of Yates & Mclntyre ; and it must be admitted that they 
did so. not altogether without reason, for it is a fact, and tlie Hon. 
Senator Beekman knew it to be a fact, that the former treasurer 
of Union College, (Henry Yates, Esq.) was sent to New-York 
(see Chanc. documents, § 92,) by the President, for the express 
purpose of guarding his rights and the rights of Union College, 
and that wliile receiving from the college his usual salary as 
treasurer and secretary, and from the president, |1,300, and his 
travelling expenses, annually, for performing these services, he 
entered secretly into partnership with said firm, and shared with 
them in their profits. He, therefore, (for he still continued to 
keep the books of Union College,) must know what sums were 
paid by Yates & Mclntyre to the institution, as well as what com- 
pensation they paid him in the shape of profits, for acting in this 
double capacity ;* still, if the books of Yates & Mclntyre show 
during tiie years stated, that any such amount as $802,323.28 
was paid either to Union College, or to its president for Union 
College, then they show not only what is not true, but what is 
shown not to be true, by the very schedules taken from their 
books, to the correctness of which they have made oath, as the 
same are set forth in a bill on file in the Court of Chancery.f 
* See Appendix p. 64. 
fFor the Proof of this See Appendix B. p. 39. 

'' As an offset to this^'' (the great amount stated in said report to 
have been 'paid to Union College^) the article adds^ " the trustees ex- 
hibit property to the amount of $604,350, of which the college build- 
ings and grounds make $296,485. The actual cost of these buildings 
was not J probably J over $60,000." 

Now, the old stone college edifice and its appurtenances, chiefly 
erected (but not paid for) before Dr. Nott became connected with 
the college, cost $66,618 ; that is, $6,618 more than the entire 
establishment is estimated to have cost. 

Those gentlemen who have ever visited the grounds and groves 
and gardens belonging to Union College, require no other data 



ANSWER TO CHARGE III. 11 

to enable them to form an opinion of tlie candor of this estimate, 
and the justice of the censure pronounced in the Hon. Senator's 
report. To those who liave not, the subjoined schedule (taken from 
the report of the treasurer of the college to the Legislature, which 
report was made the basis of the inquiry instituted by the Hon. 
Senator Beekman,) may not be unacceptable. 

Buildings. 

Three college edifices for the accommodation of students, in- 
cluding six officers' dwellings, the chemical laboratory, three 
society halls, college library room, and rooms for three society 
libraries. 

Two edifices containing philosophical hall, chapel, theological 
hall, and three lecture rooms. 

An edifice containing the geological hall and museum. 

Two edifices, containing each accomodation for a family, a hall 
for boarding students, and additional study and lodging rooms, 
together with the sites, yards, and outhouses belonging to these 
respective buildings. 

Grounds. 

Four gardens in connection with the officers' houses, containing 
over five acres. 

An ornamental and botanical garden of about eight acres, for 
the use of students in the study of botany, and of the professor 
of botany. 

Extensive groves, and walks and ornamental grounds, for the 
use of students in exercise and recreation, and also for a college 
cemetery. 

Also a site for an observatory, connected with about forty acres 
of grounds, and a dwelling house. 

These buildings, gardens, grounds, cemetery, water works, &c., 
&c., amounting to about two hundred and eighty acres, lying in 
immediate connection with said buildings, and adjoining the 



12 CHARGE IV. " PAYMENTS NOT MADE FOR AMOUNTS CLAIMED 

compact part of the city, have cost (irrespective of interest) 
$296,485.31. 

To calculate interest on one side of an account only^ is believed 
to be not the most equitable method of making out a balance 
sheet ; and yet, in exhibiting the fiscal condition of Union Col- 
lege, the Hon. Senator has charged interest on the amounts 
received by the college, but neglected, except in a single instance 
to credit interest on the amounts expended. How correct this 
method, of balancing accounts must be, will appear by merely 
calculating the interest on this $66,618, the cost of the stone 
college, from the time it was expended to the present time ; for 
tliis alone would increase the credit side of the account some 
$500,000. What then would be its increase, were the interest 
calculated on the numerous other and much larger amounts ex- 
pended. 

Charge TV. 

The Hon. Senator says, ^^Tliese payments''^ (that is, the payments to 
the ot/cer institutions) " were not made for the full amounts claimed by 
the college as credits; because in the case of the Historical Society the 
discount was one-third of the whole sum granted^ 

Answer. 

Tliis grant (which it did not occur to the Hon. Senator to state^) was 
a orrant made without interest, and was not to be raised till after 
all the otlier grants had been raised and paid. So that Union Col- 
lege actually paid for this grant, including interest, considerable 
more than it was worth by computation at the time. 

Charge V. 

The Hon. Senator further says, that " Union College received 
from Dr. J\^otf, without consideration ^ JY. Bliss'' bond for $75,000, 
afterwards exchanged for a deed of one-half of the Stuyvesant Cove 
property; that the other half came into the possession of the college on 
their paying the sum of $58,632 in 1838. On the 21st of July, 1848 
the whole Stuyvesant Cove property was conveyed by Union College to 
Dr JVo/f^ /or $177,587; and after the introduction of another subject, 
and a comment thereon, the report adds, " the same Stuyvesani Cove 



CHARGE V. CHARGED FOR PROPERTY MORE THAN IT COST. 13 

'property^ one-half of which Dr. JYoit conveyed to the college for $75,- 
000 m 1834, cost him in 1832 only $17,500, So that he transferred 
to his own college^ within two years after its purchase for ^11 fiOO^ the 
sam.e property at a price o/ $150,000. (see page 97.) 

Answer. 

Was tills statement of purchase and sale as entirely correct, as it 
is notoriously incorrect, tlie reproach, which to a cursory reader it 
seems to imply, would on examination be perceived to fall quite 
powerless on its object. For at whatever time and price this pro- 
perty was purchased by the college for $150,000, if within two 
years thereafter it was repurchased from the college for $177,589, 
the interest of the institution would seem, even in this transaction, 
to have been pretty well cared for. 

But with what exactness the facts of the case have been stated, 
will appear from the following affidavit : 

State of New- York, } 
City and County of Jllbany^ ^ 

I, Edward James, of the city of Albany, do solemnly affirm and 
declare, that some time previous to the 9th of April, 1833, being at 
that time book-keeper for Howard Nott & Co., I was employed in 
making up the accounts, and effecting a settlement between Doct. 
Ellphalet Nott and Neziah Bliss, Esq. That in said settlement, 
said Bliss agreed to execute to said Nott, in part payment for mo- 
neys received, a deed for one undivided half of Stuyvesant Cove, and 
a mortgage on the other undivided half thereof, which deed was ex- 
ecuted on the 9th of April, 1833, and which mortgage was executed 
on the 1st July, 1834, as appears by the records of the city of New- 
York. That in this settlement, said cove was valued at one "hun- 
dred and fifty thousand dollars by said Bliss, at which valuation it 
was agreed tliat said Nott should receive title to one undivided half 
tliereof, and a mortgage on the other undivided half thereof, and that 
said Bliss sliould receive credit on account to tlie same amount, to 
wit, one hundred and fifty thousand dollars. And further this de- 
ponent saith not. 

EDWARD JAMES 
Affirmed before me this 30th 

day of September, 1851, 

Daniel W. MihhSy Corner, of Deeds. 



14 . ANSWER TO CHARGE V. 

The simple truth in relation to this transaction is as follows : — 

The president of Union College, to whom the Bliss bond of 
$75,000 (afterwards exchanged for an undivided half of Stuy vesant 
Cove) exclusively belonged, intending that the avails thereof, 
and of the whole Cove property, should eventually be applied to 
the furthering of the interests of " Union College, or some kindred 
INSTITUTION CONNECTED THEREWITH," as Stated to Its trustecs, in 
order to guard against the uncertainty of life, transferred this 
bond to the institution, and placed the same in the hands of the 
treasurer, subject however to his (the president's) control during 
his natural life. The other half of the Cove was transferred on 
the terms set forth. It being afterwards, however, stated to the 
trustees by Chancellor Walworth that the college could not hold 
real estate in trust without a special law for that purpose, and it 
being also found inconvenient for the college to furnish the means 
for improving this property, or to superintend the application 
thereof, the same was reconveyed to the president at cost and inter- 
est, being $177,887 ; since which the president has procured the 
passage of a law authorizing the college to hold such trust. 
For Proof of tliis See Appendix C; p. 47. 

This transaction, so intelligible and so disinterested, was fully 
explained to the committee of the Assembly of 1849, of which the 
Hon. Senator Beekman was a member. As, however, the ultimate 
value of this property was as yet quite uncertain, the president was 
unwilling that any statement should be made to tlie public in rela- 
tion to it ; and, were his wishes consulted, not even thus much 
would now be said. His conduct towards the college has ever 
been such, and known by those connected with the college to be 
such, that he can well afford to " bide his time." 

That Senator Beekman did not publish this explanation is no 
matter of complaint, for it was given in confidence ; but, having 
been given in confidence, whether it was right in him to represent 
in his report, transactions so entirely disinterested and creditable, 
in such a way as to seem to imply a mercenary disposition, if not 
a criminal abuse of trust on the part of the President of Union 
College, is left for the decision of others. 

It is left to the same decision, whether it was proper to transfer 
charges from his report to the Assembly in 1850, after the same 



"trustees no right to permit pres't to claim $111j343." 15 

Ivdd been refuted, to liis report to the Senate in 1851, and having 
done so, iind liaving thus obtained their reindorsement by the 
Literature Committee, to proceed, witliout giving the college an 
opportunity to be heard, or even a notice that any action was 
ill contemplation, to report said charges as true, and to publish the 
same to the world,*and this too under the imposing appearance 
of an authorized report of a committee who had been examining, 
by the direction of the Senate, into the fiscal condition of Union 
College, and whether it was befitting to introduce into this senatorial 
report of 1851 a document which the committee of the Assembly 
of 1850 never saw, and, having done so, to make therefrom the 
the following deduction : '' To the minds of the committee on lite- 
rature^ it seems not an erroneous deduction^ from the preceding docu- 
ment, that, in the words of the majority report, [Mssemhly Boc, 146,) 
the president of Union College did use the funds of said college as his 
own interchangeably, as occasion offered^"^ — especially to make and 
publish sucli a deduction, when, even though said committee had 
seen said document, such a deduction iivould have been then, as it 
is now, utterly destitute of truth. For though the Hon. Senator 
affirms that, '' hy the legal document quoted^'' (the assignment of H. 
Nott & Co.,) "^^ appeared that Br. JYott was largely indebted to 
Union College on account of loans made by him out of the college funds 
to H. JYott ^- Co.,^'' precisely the reverse of this was the fact; and 
had the Hon. Senator enquired, iiot of ignorant or prejudiced per- 
sons, but of the treasurer of Union College — he would have learned 
that in place of the president being in debt to the college, the col- 
lege was in debt to the president ; and in debt even beyond the 
amount of the stock transferred, and transferred for a temporary 
purpose merely. 

Charge VI. 

The Hon. Senator says in his report, " It is extremely doubtful 
how far the trustees had the power to authorize their president, either 
to claim as his own so large a portion of the avails of the lotteries as 
$111,343, or to permit him to use the college funds indiscriminately 
as his own, so as to bring them in debt to their president in the large 
sum of $366,177." 

This, it must be admitted, is extremely doubtful. But it is not 
quite so doubtful whether the trustees had the power to authorize. 



16 CHARGE VII. " NO RIGHT TO PERMIT PRES. TO USE COLLEGE FUNDS." 

or whether the president had the right to attempt, if he was willing 
to run the hazard of attempting, to save something for the college 
or some kindred institution connected tlierewith, out of the per- 
centage granted by the State for the payment of managers and 
other expenses ; and this is precisely what the president, at great 
peril, has not only attempted, but succeeded in doing. 

For the proof of this, see Appendix "D, p. 52. 

Charge VII. 
" It is extremely douhtfuV^ whether the trustees had the power to per- 
mit their president " to use the college funds indiscriminately as his ownP 

Answer, 

However this may be, it is not quite so doubtful whether he had 
the power to use his own funds indiscriminately with the funds of 
the college if he was willing to do so, in order to save the institu- 
tion from impending ruin. 

What sort of indiscriminate use, by the president, of the funds 
of the college as his own it was that has called forth this rebuke 
of the Hon. Senator, will appear from tlie accompanying corres- 
pondence, from which the following are extracts : 

" JVew-York^ January ith, 1826. 
"Rev. E. NoTT, President of Union College : 

" It has become necessary that we should inform you, that such 
have been our losses, that we have no reasonable prospect of being 
able to pay the sum stipulated^ or even to pay the prizes in the lottery 
now pending^ unless we can procure immediate pecuniary assistance to 
a large amount. If -such assistance can be procured, we are confi- 
dent that we shall be able to fulfil our contract with the college, 
and save ourselves harmless. 

" In view of these circumstances, we have thought it our duty to 
propose, that you and the treasurer should raise for our immediate 
relief one hundred thousand dollars^ togetlier with such further sum 
as may be necessary to sustain our credit, until we can be fully 
relieved, by converting our property into money, and collecting tlie 
amounts due to us, which are still good, but merel}^ delayed in 
consequence of tlie general pressure. 

" With respect, we are 

" Your obedient servants, 

"YATES & McINTYRE." 



ANSWER TO CHARGE VII. 17 

To this the president of Union College responded in such a man- 
ner as to call forth the following reply : 

" JYew-York, Jan. 23', 1826. 

" Rev. and dear sir — I cannot omit, on the return of Mr. H. 
YateSj to express to you my very grateful sense of our obligations to 
you for the prompt relief which you have afforded us in the hour of 
our difficulty and distress. We were, it cannot be denied^ on the very 
verge of ruin, and I am now, thank heaven, (if the Union Canal 
Lottery affords us the least sum we have calculated on realizing 
from it,) enabled to believe we are safe, if we pursue a uniform and 
prudent course, wiiich I think we are fully prepared to do. We 
have had a lesson sufficiently appalling and distressing, to keep us 
in very constant remembrance of it during life. 

# # # # ^ # * 

" I am. Rev. dear sir, 

" With very sincere respect, 

" Your most obedient servant, 

"ARCH. McINTYRE." 

Within one month from this, as will appear from the following 
letter. Dr. Nott procured for the same firm, of Mr. Oakley, of 
Poughkeepsie, the further sum of |40,000. 

" Union College, Feb. 15, 1826. 
" Dear sir — Having understood that Mr. John B. Yates and Mr, 
Archibald Mclntyre wish to be accommodated with the loan of 
forty thousand dollars, for one year, and that you w^ere willing to 
make them the loan, but not walling to take the college as security, 
I have consented to transfer as collateral security, 179 shares in 
the Mohawk Bank ; 20 shares in the New- York State Bank ; 67 
full shares in the Farmers' Bank ; 176 do. on which |40 each has 
been paid ; 2 shares in the Albany Bank ; 17 shares in the Man- 
hattan Company, and 150 shares in the Rensselaer and Saratoga 
Insurance Company ; all standing unincumbered by any lien, in 
my own or my wdfe's right. I have also given a power to H. 
Yates, to transfer two bonds amounting to |7,000, which are abun- 
dantly secure, and payable at the Farmers' Bank. Mr. Yates, as 



18 ANSWER TO CHARGE VII. 

treasurer, is authorized to execute the college bond, and I liave 
authorized him to act for me in the premises, should any thing 
further be necessary. 

" In great haste, and very respectfully, 

"ELIPHALET NOTT." 
T. J. Oakley, Esq. 

This was the commencement of that '' indiscriminate use of col- 
lege funds with the funds of the President," carried thereafter to a 
much greater extent, and continued for a great length of time. 

For the Proof of this see Appendix E., p. 57. 

Still the Hon. Senator has somehow (unintentionally, no doubt,) 
precisely reversed the facts of the case in relation to this inter- 
changeable use of public and private funds, and has blended both 
together in his reports, and thus given an air of mysteriousness and 
complexity to transactions otherwise as intelligible as distinct, and 
as disinterested as intelligible. And though the documents in his 
possession contain the proof that all the payments ever made by 
Yates k Mclntyre to the president of Union College, even on his 
private account, have been reported to the trustees, and the report 
thereof accompanied by an expression of liis intention to appropriate 
the same to the " ultimate use of the college^ or some kindred institu- 
tion connected thereunth f^ smd that the President has long since pro- 
cured the passage of the requisite laws, and made, under the advise- 
ment of Chancellor Walworth and Judge Paige, all the other 
requisite legal provisions for securing the ultimate application of 
these funds to the charity for which he has intended them, still, 
and as if the President were not at liberty to superintend his own 
affairs, or as if it were the duty of the trustees to interfere in the 
management of property to which they have no right, and over 
which they claim no control, and even as if his own duty as a 
member of a committee of the Senate extended to the interference 
with private property, the Hon. Senator has claimed to exercise 
the right of censorship over the acts of the President in relation 
to this property, as though the same were a matter of public con- 
cernment. 



CHARGE VIII. " ALL PAYMENTS CALLED FOR AS DUE UNION COLLEGE." 1 9 

Why the Hon. Senator should have been so regardful of the in- 
terests of Union College in relation to payments made by Yates & 
Mclntyre to its President personally, in consideration of advances 
madcj hazards run^ and services rendered by him in thtir behalf to 
which payments the college never had any claim, either in law or 
equity, and at tiie same time should have been so regardless of the 
interests of the college in relation to payments made to its former 
treasurer, Henry Yates, Esq., to which the college had both in law 
and equity an exclusive claim, has not been explained. 

If it was the duty of the Hon. Senator to inquire at all concerning 
payments belonging to Union College which had never been report- 
ed, then was it his duty to inquire concerning said payments. 

For the Proof of this see Appendix F., p. 65. 

Without wishing to detract aught from the distinction due the 
Hon. Senator as a legislator and reformer, pre-eminence as an ac- 
countant is not to be conceded. For however convenient it may 
sometimes be to calculate interest principally on the debtor side, it 
is not believed that such a mode of procedure is likely to recom- 
mend itself to tlie general favor, or to be adopted very extensively 
in the ordinary transactions of life. 

The Hon. Senator informs the Senate, (Appenaix, page 99,) 
that " no portion of the grants of the State, was made to the 
President of Union College individually.^^ And he might have 
added with equal pertinency that none was made to the Treas- 
urer or the Trustees, or to Yates & Mclntyre, or to any one else. 
This truism stands in immediate connection with the following un- 
truth. 

Charge VHI. 

" All payments from Yates Sf Mclntyre, were called for as due to 
Union College, according to the statement of Mr. Hemingway, the 
book-keeper of Yates Sf Mclntyre. 

Answer. 
The entire falsehood of this statement will appear from the 
written stipulations of Yates & Mclntyre — ^from their written 
pleadings in the Court of Chancery— from their written testi- 



20 THE COMMENCEMENT AND CONCLUSION. 

money as a firm — ^from their written testimony as individuals — 
and from the written testimony of the Trustees of Union College 
themselves. 

For the Proof of this see Appendix G. p. 75 

The Hon. Senator begins his report in the Senate by saying : 
'*' The committee on literature find that a very brief and imperfect 
inspection was made by the select committee of 1849." and he conclu- 
des by saying: " The report of the committee of 1849 seems to be 
fully sustained by the Jacts of the case^ and the committee on litera- 
ture feel free to adopt the concluding words of that report as their 
own, and to say that the financial conditio?! of Union College is un- 
sound and improper. ^^ 

With how much authority this sentence of condemnation was 
originally clothed, as pronounced in the report of a committee to 
the Assembly in 1850, and how much additional authority it has 
derived from this formal review and solemn reiteration tliereof in 
this report of a committee to the Senate in 1851, will be apparent 
by considering the following particulars. 

1st. That both these reports were written by the same individual, 
the Hon. James W. Beekman. 

2d. That no other inspection of the fiscal condition of Union 
College had been made since the " very brief and imperfect inspec- 
tion^^ of 1849. 

3d. that the result of that inspection, as stated in the report of 
R. H. Pruyn, Esq., chairman of the committee who made the 
same, was satisfactory ; and, as stated in the report of the Hon. 
J. W. Beekman, a member of the same committee, was unsatis- 
factory. That to this report of the Hon. J. W. Beekman the 
trustees of Union College replied ; and that, so satisfactory was 
that reply, the Assembly declined taking any further action in the 
premises. 

4th. Whereupon the Hon. J. W. Beekman, having in the mean 
time become a member of the Senate, moved the reference of the 
subject to the Comptroller and Attorney-General. The Comp- 



THE COMMENCEMENT AND CONCLUSION. 21 

troUer having reported that he had not been able to attend to 
that duty, the Hon. J. W. Beekman moved that the report of the 
Comptroller be referred to the literature committee, of which he 
was chairman ; and then, on his own responsibility, proceeded to 
review his own former report to the Assembly, reiterating the 
charges made therein, adding still other charges, and ratifying 
and confirming its sentence of condemnation — and this without 
giving the college a hearing, or even notice that any proceedings 
against it were in contemplation, till said additional charges and 
the reiterated sentence of condemnation, apparently confirmed 
by the new sanctions of a senatorial committee, were published to 
the w^orld. 

That " the report" of the Hon. J. W. Beekn^an of the Assemhly^ 

1850, should seem to the Hon. J. W. Beekman of the Senate, in 

1851, " to he fully sustained by the facts of the case^'^ and that the 
same Hon. J. W. Beekman " should feel free to adopt the con- 
cluding words of^^ (his own) '^ report ^^ in 1850 " as his own^"^ in 
1851, and to pronounce now^ as he admits he pronounced /Ae/i, 
on " a very hasty and imperfect inspection j'' " that the fiscal 

CONDITION OF UnION CoLLEGE IS UNSOUND AND IMPROPER," aud that 

he should wish to persuade the other members of the committee 
to do the same, is quite natural. But how the other honora- 
able members of that committee should on the ground of " a very 
hasty and imperfect inspection^'' made by a committee of another 
body, whose report had not been committed to them, have been 
induced gratuitously to endorse the same, and without giving the 
college an intimation of their intention to examine its fiscal con- 
dition — should '''•feel free'''' to reiterate the same unqualified 
sentence of condemnation, is only to be accounted for by the 
influence exerted over them by their chairman. And though it 
is understood that the other members of the committee did 
nothing more than to meet to hear the report read which had 
been prepared by their chairman, and on his responsibility for 
the truth of its contents, to afiix their names thereto, still, it is 
not believed that they will on reflection feel, in doing even this, 
that they have treated Union College or its officers witli that 
courtesy due to a literary institution, or with that even-handed 
justice due to all men — especially it is not believed that they 



22 COMPARISON WITH THE SMITHSONIAN INSTITUTION. 

will feel thus when tliey sliall learn, as learn they will, that they 
have lent their names in support of statements which have no foun- 
dation in truth. 

As if the gratuitous and injurious statements and insinuations 
with which this report abounds, might not otherwise prove suflSl- 
ciently effective, their effectiveness is hightened by comparison. 
Hence the Smithsonian Institution is introduced. Concerning this 
institution, the Hon. Senator thus speaks : 

"To show what a proper and judicious administration of such 
funds as have been long under the control of the President of Union 
College, (for his trustees seem never to have interfered with his 
financial designs) it will be instructive to look at the present condi- 
tion of the Smithsonian Institution at Washington. James Smithson, 
of England, left his entire property to the United States of America, 
to found at Washington, an institution which should bear his 
name, and have for its object the increase and diffusion of know- 
ledge. The trust was accepted by the United States government, 
and an act passed August 16, 1846, organizing the 'Smithsonian 
Institution.' 

" The endowment consists of the original sum of $515,169. 00, re- 
ceived September 1st, 1831, which is to remain forever as a perma- 
nent fund. The interest of this amount to 1846, when by act of 
Congress the funds were placed in the hands of the board of regents, 
was $242,129.00. 

" A very elegant edifice has been almost completed and paid for, 
and the building committee have lately paid back a surplus to the 
permanent fund out of the proceeds of the interest set apart for the 
building, for the larger endowment of the institution." {Jleportj 
Appendix^ page 98.) 

Much as the trustees are gratified to learn the present prosperous 
condition of the Smitlisonian Institution, they are quite unable to 
perceive the relevancy of a comparison between it and Union 
College. 

Had the funds of Union College been put out at interest, ke 
those of the Smithsonian Institution, during the fifteen years to 



COMPARISON WITH THE SMITHSONIAN INSTITUTION. 23 

which the comparison extends, in place of being employed as re- 
ceived, and often in anticipation thereof, in tlie instruction of 
hundreds of indigent, but talented young men, many of wliom are 
now serving their country in places of trust and lienor, and diffu- 
sing abroad the knowledge thus acquired, — had the funds of Union 
College during tliese fifteen years been thus accumulating, in place 
of being thus expended, it might also liave been looked upon by the 
Hon. Senator with a benignant eye. 

On the receipt of this bequest by our government, $500,000 
(says a member of Congress) were invested in Arkansas bonds 
and some small sums in the bonds of Illinois, Michigan and Ohio ; 
in 1846, when the subject was investigated by Congress, little, if 
any, interest had been paid by Arkansas, and some was due from 
other States. And he further says that during the debate on the 
bill before the House, J. Q. Adams offered an amendment " instruct- 
ing: tJte, gcvernment to use moral suasion with the State of Arkansas 
and such other States as were delinquent^ to induce them to pay the in- 
terest on their hondsP And adds, ^^ no fund was ever worse managed. 
The Arkansas bonds are quoted as now selling from 53 to 55 per 
cent discount." 

Be this however as it may, it is obvious that the capital of the 
Smithsonian Institution, which as tlie Hon. Senator states, was 
originally $515,169, ought during the fifteen years it was placed out 
at interest, to have produced at simple interest $540,000, and at 
compound interest $900,000, in place of the stinted sum of $242,- 
129, so boastfully brought forward as the extraordinary product of 
that investment, '' under ^^ what the Hon. Senator denominates " such 
a proper and judicious administration.^^ 

Still, and notwitlistanding this eulogy on the managers of these 
funds, and humble as the estimation in which the Hon. Senator 
holds the fiscal ability of the President of Union College, to whom 
the control of its affairs are exclusively attributed ; and notwith- 
standing the pecuniary embarrassments these repeated attacks have 
occasioned, especially during the sickness of the President, (now 
happily restored to health again ;) and notwithstanding the ulti- 
mate triumph and prosperous condition in wliich the Smithsonian 



24 MARCY, WRIGHT AND CUSHMAn's REPORT. 

Institution is at length placed, still and notwithstanding these things, 
the trustees do not apprehend, even under the less approved ad- 
ministration of tlieir President, that Union College, though but one 
of the many institutions founded by tlie Empire State, would suifer 
at present, by a comparison of existing funds, or of ultimate prospec- 
tive endowment with even that proud monument of national regard. 

As to the candor and fairness of the Hon. Senator Beekman's 
statements, or the authority of liis decisions, whether as originally 
expressed in 1850, in his report to the Assembly, or as ratified and 
confirmed by the Literature Committee in his senatorial report of 
1851, no opinion will be hazarded; still it is obvious to remark 
how very different the conclusions were at which the members of 
the committee arrived, who personally and carefully examined the 
questions now at issue, from the conclusions to which the members 
of a committee have been conducted who never personally examin- 
ed said questions at all. The conclusion to which the members of 
a committee have been conducted who never personally examined 
said questions at all, have been the subject of the foregoing re- 
marks. The conclusions to which the members of a committee, 
to wit. His Ex. Silas Wright, jun., His Ex. William L. Marcy and 
the Hon. John P. Cushman, after long and careful personal exami- 
nation arrived, are as follows : 

" In view of the preceding facts, it has appeared to your committee, 

" That the embarrassments of Yates & Mclntyre, according to 
their own statements, arose from speculations entered into by them 
apart from the lottery business, and wholly unconnected with Union 
College. 

" That the President has furnished extensive means, performed 
important services, and run great personal hazards for the contrac- 
tors on their repeated applications, and this evidently without any 
sinister motive, without the design of personal gain ; but for the 
sole purpose of aiding the contractors, and of securing and advanc- 
ing the interests of Union College, or some kindred institution con- 
ed therewith. 

" That the course of the President throughout all the novel 
and difQ.cult emergencies which have occured in conducting this 



MARCY, WRIGHT AND CUSHMAn's REPORT. 25 

whole business, has been marked by fairness and liberality towards 
the contractors, and by firmness, sagacity and disinterested zeal for 
the interests of the college and of education. 

" That the full powers with which he was invested by the trus- 
tees, have been exercised with wisdom and success ; and from the 
information they liave received of his views in relation to this whole 
subject, your committee are of opinion that the interests of the 
college and of science, require that these plenary powers should be 
continued. 

"All of which is respectfully submitted. 

" W. L. MARCY, 

" SILAS WRIGHT, Jun., 

." JOHN P. CUSHMAN, 

" Committee^ 

It is humiliating to be called on again to reply to charges, which, 
whether originating in ignorance or malice, have not, and have been 
shown not to have, the slightest foundation in truth ; and it is also 
humiliating to be required to vindicate an individual from the 
imputation of applying the college property to his private use, 
while in the act of applying and periling his own property to rescue 
the college from the utter ruin to which it was exposed, and in 
which, but for his timely and disinterested interference, it must in- 
evitably have been involved. 

To persons acquainted with the President of Union College, 
and especially to those more immediately connected with the in- 
stitution, any contradiction of the wanton and injurious reports 
which have been recently put in circulation is quite unnecessary. 
Throughout this entire circle the utter falsehood of these reports 
is well known. How they originated, and from what motives they 
were circulated, is also well known. It is believed that the docu- 
mentary evidence herewith submitted, will furnish abundant proof 
to persons neither connected with the college or personally acquaint- 
ed with its President, that the reports in question are not only not 
true, but also that the truth is usually precisely the reverse of what 
is stated. 



»b WHY REPORTS PERMITTED TO REMAIN UNANSWERED. 

Why, then, it may be asked, have these reports been permitted 
to remain uncontradicted so long 1 The reason is at hand. 

The ruin to which Union College was exposed durnig the 
threatened bankruptcy of Yates & Mclntyre, which the President 
had UDder taken single handed to avert, rendered the utmost secrecy 
on his part indispensable. Not an intimation was even given to 
the trustees of the danger till it had ceased to exist. 

A soon, however, as it had ceased to exist, the President in 
formed the Board of Trustees of the fact and informed them also 
how that danger had, by his interference, been averted ; what 
compensation had been proffered by Yates & Mclntyre for the ad- 
vances madej hazards run, and services rendered by him in their he- 
half, and how he proposed to appropriate that compensation. And 
though he took immediate steps to secure to Union College the 
ultimate benefit of whatever he might receive, still however, as 
the receipt of anything was contingent, and as much time must 
elapse before the amount could be ascertained, he was unwilling 
that his intentions should be made known beyond the limits of 
the board. 

In the meantime he continued (by and with the advice of a 
finance committee appointed at his request,) to receive, invest and 
manage the funds thus acquired, till prevented by sickness from 
personally attending to that duty. 

During this sickness, an act of the trustees gave to an indivi- 
dual connected witli the College great personal offence. This 
act was imputed to the president, though unjustly, *for being sick 
at tlie time he was not even consulted concerning it. The ag- 
grieved party threatened to retaliate by placing the college, 
tlirough the influence of friends, under the ban of the Legisla- 
ture. To furnisli a reason for legislative interference, a report 
(once before disproved) was revived and circulated among the 
members of the Legislature, and elsewhere, to wit, that the pre- 
sident had acquired great wealth by using the funds of the col- 
lege in his private speculations. The real estate managed by his 
agents in New- York on Long Island and in Connecticut, and the 
stock known to be standing in his name, gave, (in the opinion of 



CONCLUSION. 27 

those ignorant of the facts of the case,) the color of truth to this 
report. Public prejudice was thus excited, and the threat which 
originated in private pique was executed. Legislative visitation 
was brought about. In what spirit it was commenced, and in 
what spirit it has been continued, the public are aware. 

Still, the president, adhering to his maxim, that silence is the 
most appropriate answer to slander, and believing also that acts 
of charity were by christians rather to be regarded as private 
duties than acts to be publicly proclaimed, refused to give j or to 
allow his friends to give, any explanation in his behalf. 

In this refusal he has persisted, and though finally overruled 
by the board of trustees, the explanations now given are given 
contrary to his wishes. Nor would they tlierefore be given, were 
it not believed that the good of the college required this, as well as 
the good of other individuals concerned. 

Though the documentary evidence hereunto appended has for 
the most part long since been placed in the hands of Senator 
Beekman, the trustees cannot persuade themselves that he has 
examined it, and it is confidently expected, w^hen he shall have 
done so, that he will be convinced that he has been misled by 
information which though perhaps believed at the time by those 
who gave it, was founded on a misapprehension of the facts 
of the case, and that he has himself, therefore, in his report, un- 
intentionally, done injustice to the Institution, and to the officers 
connected therewith. Should they however be mistaken in tliis, 
and should any further attempt be made to establish the injuri- 
ous and gratuitous charges which have been brought before the 
public, all the Trustees have to request, is, that they may have 
an opportunity of meeting their accusers face to face, of exam- 
ining the witnesses if any can be produced, in support of the 
charges in question, especially of examining the author of what is 
styled in Senator Beekman's report, " memoranda made by A. 
Johnson," which memoranda contain answ^ers to questions impu- 
ted to the treasurer of Union College, and appealed to as testimony, 
which he. avers he never gave, and whicli were never read to him, 
and which were distinctly disavowed by him in in his report of 



28 CONCLUSION. 

April 8 th, 1850, but whicli, notwithstanding such disavowal, 
have been reproduced as testimony in the Hon. Senator's report 
to the Senate April 12, 1851, and also of examining tlie books 
of Yates & Mclntyre and ascertaining whether the $802,322 charged 
to Union College in Senator Beekman's report, page 96, (and 
on which interest is calculated and charged for 20 years,) is so 
charged in the books of Yates & Mclntyre — and whether all 
payments made to the President of Union College for advances made 
and hazards run by him in their behalf are also actually charged 
to Union College in the books of Yates & Mclntyre, as they have 
been in the report of the Hon. Senator Beekman, and finally 
whether the books of Yates & Mclntyre contain two distinct and 
different accounts with Union College, one from w^hich the Hon. 
Senator Beekman lias copied his charge of payments made between 
Marcli, 1823, and December 1835 — another from w^hich their own 
sworn schedules of payments during the same period have b>een 
taken — the two differing in the amounts charged to the college by 
several hundreds of thousands of dollars. (As appears to be 
the case, page 44.) 

All of which is respectfully submitted in behalf of the trustees, 
by order of the finance committee. 



A. HOLLAND, Treasurer. 



Union College, Sept, 20thj 1851, 



jfoTE. — The subjoined documentary evidence has been collect- 
ed, arranged and printed by the treasurer, under the supervision 
of the chairman of the finance committee, 



APPENDIX. 

( A. ) 

^^ The truth has been concealed,^^ Sfc, as stated in page 6. 

When — from whom concealed ? ]Vot from Yates ^ Mclntyre. 

Even during that critical period when Yates & Mclntyre were, 
by their own admission " on the verge of bankruptcy," (and 
to sustain whom the President had generously put every thing he 
possessed in peril ;) those gentlemen at least were made acquainted 
with his disinterested intention of devoting the remuneration 
proffered him, should the same he received, exclusively to the 
advancing not of his own interests, but the interests of Union 
College. Hence, in a letter addressed to the President by Henry 
Yates, though he admits that he was himself actuated by motives 
of personal interest, he repels the imputation that such was the 
case with the President. 

His words are : " That I, when risking the welfare of myself 
and family to the extent of what I have, should be supposed to 
anticipate in future some advantages, is not to be wondered at ; 
hut that you should be supposed to do 50, individually^ astonishes me. 
I have never heard it intimated by any one^ and I believe it only 
rests in the minds of some evil disposed persons, as what they or he 
would do in a similar situation." (^Chancery Docs. § 119.) 

In accordance with the views expressed by Henry Yates, are 
those expressed by his partner, A. McINTYRE. His words are : 
" But if the College is enriched, I rejoice in it, with the utmost sin. 
cerity of my heart ; because I wish the success of the College, and 
because I wish to see you enjoy that credit you so richly merit, for 



30 APPENDIX A. " THE TRUTH HAS BEEN CX)NCEALED." 

your able and unremitting exertions for that institution. I long for 
the termination of our labors^ when it can be ^publicly known what you 
have done^ and that you can have due credit for producing treble the 
amount of the College endowments that its Trustees ever thought of 
realizing from lotteries; you yourself cannot more rejoice in these 
results than myself. (Chancery Docs., § 360.) 

And both A. Mclntyre and J. B. Yates affirm under their sign 
manual, that '' the whole sum taken by the President was avowedly 
taken for the benefit and to be paid over to the funds of the College.^^ 

It was not concealed from the Trustees of the College. For as 
soon as the brightening prospects of Yates & Mclntyre gave any 
reasonable ground of assurance that their failure would be averted, 
the President made the same communication which he had made 
to Yates & Mclntyre to the Register of the College, to different 
members of the board, and even to the Board of Trustees in session, 
as will be seen from the following extracts : {Chancery Docs.^ §264 
to 269.) 

" Though the first payment of per centage for personal services 
rendered, and hazards run, under the foregoing stipulation of Y^ates 
& Mclntyre, dated May 30th, 1826, was not received by the Presi- 
dent of Union College until the 2d of September, 1829 ; still it 
became apparent to him early in that year, that there was a proba- 
bility that the apprehended ruin of the parties concerned would not 
only be prevented, but that some benefits would arise to the Col- 
lege from the services rendered and the hazards run, by him, in 
behalf of the contractors. 

" It was, therefore, intimated early in the year, to William James^ 
Esq., by the President, that the funds of the College would, pro- 
bably, through his instrumentality, be more or less increased; and 
that, as life was uncertain, it had now become necessary for the 
Board of Trustees to take measures for becoming acquainted not 
only with their present property, but also with the nature and 
extent of their prospective and contingent rights, so that in case of 
his death they might be in possession of a knowledge of facts, re 
quisite for securing the benefits intended to inure to the institu 
tion. 



APPENDIX A. 



31 



"Agreeably to the suggestions thus made, a committee of 
finance was, at liis instance, appointed by the board, at their 
meeting in July, 1S29, which committee say in their rej^ort to 
the board : 

"'The concerns of the College have become large and multi- 
farious under the auspicious influence and disinterested perseve- 
rance of the gentlemen who have heretofore conducted its fiscal 
interests. 

" ' Your committee freely acknowledge, that so far as respects 
themselves, they have not such a knowledge of the concerns and 
details as w^ould be necessary in case of any adverse dispensation 
should deprive us of tlie Principal and Treasurer, .to continue 
and mature their grand plan, without confusion -, they therefore 
request that such measures may be adopted as may appear to 
the board necessary.' " 

To wdiich may be added the certificate of Jonas Holland. 

" I hereby certify, that on or about the first of August, 1822, 1 
was appointed by the President of Union College, one of a Board 
of Managers under the act to limit the continuance of lotteries, 
passed April 5th, 1822, and Secretary of the board; IVom wliich 
time I have assisted the President in keeping his accounts with 
Yates & Mclntyre. That during the period referred to in the 
foregoing note, the intimation there said to have been made to 
William James, Esq., in relation to the contingent augmentation 
of the funds of Union College, through the agency of the Presi- 
dent, was also made to me ; and that wdiat w^as then intimated as 
doubtful, w'as afterw^ards, at different periods, distinctly stated as 
almost certain ; and previous to the stopping of the payment of 
the per centage as stipulated for by the contractors, the President 
did, on several occasions, call my attention to certain documents re- 
lating to the said contingent claims of College from that source 
which, should his life not be spared to the close of the lottery, he said 
would be found among his papers, 

" JONAS HOLLAND." 

"Schenectady, Aug. 1st, 1834." 

{Chancery Docs, § 264, 265, 266, 267, 268, 269.) 



32 APPENDIX A. TRUTH CONCEALED. 

"In July, 1831, the President of Union College reported to the 
Board of Trustees : ' 

" That although contingencies might yet arise that would prove 
ruinous alike to the contractors, the college and himself, still they 
were apparently so far out of danger as to justify him perhaps, in 
communicating to them what he had previously more fully com- 
municated to their committee of finance, to wit : 

" That he had been obliged, in order to prevent the failure of 
Yates and Mclntyre, and to enable them to go on with the lot- 
teries, to render in their behalf, personal services, to assume 
personal responsibilities, and to raise moneys for their use at dif- 
ferent times, and to very large amounts, for which he was entitled 
by stipulation to receive a portion of the profits of the lotteries, should 
any arise, as there was now reason to hope would be the case, and ■ 
perhaps to a large amount; which amount, be the same more or less, 
it was, and ever has been (after providing for the services rendered 
and hazards run) his intention to appropriate to the use of Union Col- 
lege, or some kindred institution connected therewith. 

" That with a view to this, he had procured the passage of a law 
for founding, in connection with the College, an Institution of Sciences 
the material provisions of which are as follows:'^'' 

{Clauses of an act passed Jipril 23(^, 1831.) 

"4. It shall and may be lawful for the senior trustee of the 
Schenectady Academy, residing and being at the time in Sche- 
nectady, by giving notice to the other trustees, to convene the 
same ; and the trustees convened on such notice, shall be a board 
competent to fill all vacancies, at the time existing, whether oc- 
casioned by death, resignation, neglect, or removal of any former 
trustee ; and that the charter of said Academy be revived and 
confirmed, any surrender or non-user to the contrary notwith- 
standing. 

" It shall and may be lawful for said trustees to receive, hold 
and use, any additional moneys, or other property that may be 
subscribed, bequeathed, or otherwise bestowed for the purpose of 
establishing, in the city of Schenectady, in addition to the school 
hitherto taught, an institute of science and industry, in which 



APPENDIX A. TRUTH CONCEALED. 33 

manual labor, at the discretion of the board, shall be combined with 
mental application, by all the members thereof, whether preparing 
for college, for becoming teachers of schools, or for any other pro- 
fession or calling in life. 

"6. It shall and may be lawful for said trustees to divide such 
institute into such departments as shall be deemed expedient, and 
to prescribe the course of studies and system of discipline, as wxll 
as to appoint the requisite professors or teachers in each. 

" It shall and may be lawful for said trustees, and the trustees 
of Union College, to make provision that the members of said in- 
stitute shall be so far recognized as members of said college as to be 
allowed to attend the lectures and receive books from the libraries 
established therein, together with any other privileges granted to 
students in full standing, that may be deemed compatible with the 
interests of both institutions. 

"The President further reported, that he had, with a view to 
the carrying the provisions of the aforesaid clauses into effect, pur- 
chased of the corporation of the city of Schenectady, the former 
Stone college edifice for said institute of science, should the same 
be established. 

(Chancery doc. §§ 436, 437, 438, 439, 440.) 

In July, 1 832, the President having in bis report to the board 
glanced at the advances he had been required to make, and the 
hazards he had been obliged to run, in order to prevent the ruin 
of the college by the failure of Yates and Mclntyre, added that, 
" while the affairs of the contractors were in the most unpromi- 
sing state, an act passed the Legislature, authorizing the mixing 
of the land prizes in the Albany Land Lottery with the money 
prizes in the Literature and Fever Hospital Lotteries, provided 
the consent of the institutions interested therein could be ob- 
tained. 

" This act of the Legislature, in the opinion of Yates and Mcln- 
lyve, afforded an opportunity for making a contract which, though 
attended with the hazard of great loss, held out, as the alternative 
the prospect of corresponding gain. 
3 



34 "^ APPENDIX A. 

"To enable them, however, to execute the contemplated con- 
tract, the consent and co-operation of the subscriber was neces- 
sary as the heavy responsibiUties abeady assumed by liim, in be- 
half of the contractors, must not only be continued, in case such 
contract was to be executed, but still greater responsibiUties 
must also be assumed, in order to sustain their credit during the 
execution of the same. 

" To induce the consent and co-operation of the subscriber j a spe^ 
cijic share of the profits^ whatever the same might 6e, was proffered 
to him by the contractors. 

" Though fully aware that they were deeply involved, and 
that very large additional amounts must be furnished for their 
use, in order to sustain their credit during the prosecution of the 
contemplated undertaking, the subscriber in the hope of ultimately 
benefiting the College thereby^ made up his mind to put every thing 
at hazard^ by consenting to share with them the responsibilities and 
the losses or profits of the enterprise^ in conformity to the stipulations 
then made and provided. 

" This he did however with the intention, expressed at the time, 
and often since repeated, of appropriating^ after providing for 
the expense and hazard by him incurred, his share of the pro- 
fits, should any accrue, to the use of Union College^ or som,e kin- 
dred institution connected therewith; an intention never relin- 
quished, and which he still purposes to execute, reserving to 
himself the right of determining the objects to which said pro- 
fits shall be applied, and the time and manner of tlieir applica- 
tion. In conformity to which intention certain expenses have 
already been incurred by the subscriber, as others may hereafter 
be, in the enlargement and improvement of the College site, or the 
buildings thereon erected, or in furtherance of those arts and 
sciences which it is the object of the institution to promote." 

rChancery Doc. §§ 513, 514, 516, 517, 518.) 

In 1833, the President reported to the board as follows : 

" As to the additional lottery avails, arising out of the act 
authorizing the mixing of the Albany land prizes with the mo- 



APPENDIX A. " TRUTH CONCEALED." 35 

ney prizes of the other lotteries, passed 1826, little need be said, 
as the rights and claims of the respective parties interested there- 
in remain the same, as stated at length in the last report ; no 
further payments having been since made to the subscriber by the 
managers, under the special contract entered into with him, 
by virtue of tlie act aforesaid, for personal services rendered, 
hazards run, and moneys advanced. 

" Of the several amounts previous, y received hy the subscriber 
under said personal contract^ held by him in his individual rights 
though appropriated to public purposes, in the manner heretofore 
stated ; the principal part has with the approbation of the Financial 
Committee been invested in real estate situate for the most part in the 
city of JYew- York and on Long Island or elsewhere^ or in bonds and 
mortgages, or stocks of some sort and the residue appropriated to 
repairs and experiments. 

" The old college purchased and repaired by the President, 
remains still in his possession ; but he has not thought proper to 
proceed to the founding an institute on the amended charter of the 
old academy, to be connected with the college, as was contemplated, 
because it yet remained uncertain whether the amount to be re- 
ceived by him from the source aforesaid will be equal to his former 
expectations 

" The subscriber is aware that the best devised human plans may 
be frustrated, and that uncertainty attends all things future. 
He is aware that contingencies may occur, that will not only re- 
fute the calculations of profits he has made, but also involve 
him, the college, and the managers in one common ruin. Still ap- 
pearances are more favorable than on any former occasion -, and 
even though the residue of the per centage, stipulated to be paid 
the subscriber for personal services, hazards and advances, should 
not be fully received -, still there is reason to hope that some- 
thing handsome will eventually be realized by the college, from 
the investments aforesaid already made, and besides^ even though 
there should be some deficiency in the final payment of the percentage 
stipulated, still the subscriber may, if prospered in some other way, 
make up therefor, and this if, in his power, it would afford him 
pleasure to do ; nor will any thing but necessity reconcile him to 



36 APPENDIX A. TRUTH HAS BEEN CONCEALED. 

the ultimate disappointment of expectations ^ which^ though not found- 
ed on any legal claimj he has contributed to raise. 

" All of which is respectfully submitted, 

" ELIPHALET NOTT," 

Chancery Docs. §§ 550, 551, 552, 553.) 

These reports were accompanied with printed schedules 
(see §§ 289, 309, 326, 339, 371,376, 391,392, &c.,) containing 
the dates and amounts of every payment ever made by Yates 
& McIntyre, for advances furnished and hazards run by the 
President in their behalf. 

In all this there does not appear to have been any great " art and 
skiW displayed " in concealing the irutW^ from the knowledge 
of the trustees at least. 

On the contrary, the whole facts of the case have been pre- 
sented to them with sufficient frankness, especially when it is 
considered that these were transactions of a personal and pri- 
vate nature^ concerning which the trustees had no right to seek informa- 
tion^ nor was the President under the least obligation to give it; as 
neither the College nor the public had any legal or equitable right 
threinj as will be seen from the contracts which will be found 
under another reference in this appendix. Nor was this truth un- 
necessarily concealed from others. For the President did not hesi- 
tate to communicate freely in relation to the same, whenever in 
his opinion the interests of the institution required it, as the follow- 
ing letter from His Excellency, Gov. Wright, to Yates k McIntyre, 
will show : 

" Albany, 26th Dec, 1832. 
" Gentlemen — To no cause or exertions do you owe the for- 
bearance of the public and the Legislature, so much as to the 
manner in which the President of Union College has embarked 
ms character, fortune and fame, for the sustentation of the mana- 
gers, both against reproach find against pecuniary embarrassment. 
I think I have seen periods when the Legislature, regardless of 
other considerations, would have swept tliese lotteries from ex- 
istence, had they not kuown that the doing so would bring ruin 



APPENDIX A. TRUTH HAS BEEN CONCEALED. 3*7 

to the private fortunes of Dr. Nott, and deep loss, if not ruin to 
other fair business men, whom he had induced to lend their money 
and their credit, to prevent disaster in the drawings which had 
taken place, and to continue the system until the destined objects 
should be accomplished. *#*#*** 

"I am, with great respect, 
" Your obedient servant, 

" SILAS WRIGHT, Jr." 
"^ Messrs. Yates k McIntyre." 

{Chancery docs» §528.) 

In a letter to the President, after having examined the subject, 
th^. Governor writes : 

" Washington, 16th Jan., 1833.. 
" My Dear Sir — I sent you, some short time before I left Albany, 
a copy of the letter written by me to the managers. * * 
I have received trom them an answer to that letter, and that you 
may be in possession of the whole facts so far as I am concerned, I 
think proper to send you the answer received. I feel the more 
strongly bound to do this, because I wrote to you as a trustee of 
the college, as will be seen by the language of my letter, and because 
in that capacity I had with you cursorily examined the contract 
and the correspondence with them, and from tlie facts drawn from 
these papers, had fully advised you to institute proceedings in chan- 
cery against tliem, in case they should persist in the singular posi- 
tion they had assumed. * # # # * # * 

" I then say, that my impressions, drawn solely from the several 
contracts and tlie correspondence relating to them were, that tliere 
was not a doubt as to tlie perfect legality of eacli and all of the con- 
tracts, while I have always view^ed, and I still view, the lotteries as 
a great evil not to be endured, but for the sake of the charities 
charged upon them ; and seeing from the correspondence that the 
managers must have wholly failed, and consequently the lotteries 
wliolly stopped, but for your exertions, I did think, and do still 
think it to be your duty to enforce the contract, tliat you may. to 
the extent provided for by the stipulation, indemnify the commu- 
nity for the evil continued by your means, by the addition to the 



38 APPENDIX A. TRUTH HAS BEEN CONCEALED. 

charitable object provided for by the contract which induced you 
to use those means. My object in writing to the managers was, in 
a purely friendly spirit, to awaken them to a correct moral sense 
of the transaction. Having failed in this, I now give you my opin- 
ion of your moral duty, and the only condition upon which you can, 
in my judgment, excuse yourself from its performance, is that com- 
petent counsel shall pronounce it impossible to enforce the contract. 
Excuse me for this intrusion upon your time, and believe me, 

" Your very respectful, 

" And o'bt. serv't., 

" SILAS WRIGHT, Jr." 
" Doct. Eliphalet Nott." 

(Chancery docs. § 560.) 

So much for the imputed " art and skill made use of'' " in conceal- 
ing the truth^ as charged page 6. 



APPENDIX B. 39 

(B. ) 

''Dr. Nott received for Union College $802,322.28," as stated page 9. 

Union College " received from Yates ^ Mclntyre, $802,323.28." So 
says Senator Beekman in his report April 12th, 1851, (page 96, 97.) 

Eut what say Yates & Mclntyre themselves, under the solemnity 
of tlieir oaths, concerning the payment made during these same 
years, both to tlie Treasurer and the President 1 

They say in their bill of complaint, sworn to on the 12th August, 
1834, before E. Cowan, " And your orators charge, that the an- 
nexed Schedule B, contains a true and particular statement of such 
moneys so paid from time to time by your orators to the said 
Treasurer of Union College, with the times particularly of each 
payment so made ; and which statement your orators belie v.e to be 
correct and true, the same having been made from their books, 
which they believe and charge were accurately kept. 

SCHEDULE B. 

A statement of payments made by Yates (f* Mclntyre^ to the Treasurer 
of Union College, on the fund denominated the College Fund. 

1823. May 31, Cash paid H. Yates, Treasurer, $4,450 60 

July 30, do do 5,365 30 

Aug. 2, do do 4,000 00 

Oct. 18, do do 9,163 00 

Dec. 11, do do 11,662 00 

1824. Jan. 22, do do 8,330 00 

Mar. 29, do do 14,543 50 

July 4, do draft to J. W. Francis, 5,31100 

Sept. 1, do II. Yates, Treasurer, 17,958 60 

1825. April 13, do do 103,492 72 

1826. May 8, do draft to D. Boyd, 3,000 00 

1827. Jan. 31, do bond T. Gardiner, with int. from 13th April, 1826,. 7,000 00 

do do Isaac Riggs' note, 10th Jan. 1825, 1,500 00 

do do Archer's bond, with interest from the 7th Dec. 1826, 16,000 00 

June 5, do bond of E. Richardson and wife, 4,000 00 

Aug. 4, do bond of A. B. Shankland, 4,000 00 

Sept. 17, do drafts of Levy Bebee, 3,682 00 

21, do do do 1,200 00 

Oct. 9, do do do 700 00 

15, do do do 1,500 00 

19, do do do 2,000 00 

Carried forward, $228,868 72 



40 APPENDIX B. $802,323 received. 

Brought forward, $228,858 72 

1827. Oct. 24, Cash paid drafts of Levy Bebee, 683 00 

Nov. 15, do do do 1,000 00 

20, do do do 2,582 OO 

21, do do do 2,383 00 

25, do do do ...., 3,800 00 

Dec. 31, do Levy Bebee, 488 25 

do do note to Terhune,AYitli interest from Uth July, 1827, 2,000 00 

1828. Feb. 11, do Levy Bebee, 329 53 

1830. Feb. 4, do note to E. Nott, 5,525 00 

June 4, do note to H. Yates, Treasurer, 2,825 28 

July 3, do do 2,841 88 

do do bondofC. Barrington, and in. due thereon to this day, 18,654 17 

do J. J. Y. Schaick, do do 1,373 62 

do S. Newell, C. Dyer, do do 2,062 33 

do Lyman Paine, do do 8,579 33 

do J. C. Van Dyke, $6, 020 00 

Less note due 14th July, 1827, and interest, 2,362 00 

-— 3,658 00 

Interest on Smith's mortgage, 75 26 

Aug. 4, Cash paid note to H. Yates, Treasurer, 2,856,80 

Sept. 4, do do 2,873 10 

Oct. 4, do E. Nott, 5,758 33 

18, do H. Yates, Treasurer, 2,896 26 

Nov. 18, do do . ^ 2,912 65 

Dec. 16, do do * 2,927 78 

1831. Jan. 18, do do 2,944 25 

Feb. 18, do do 2,959 46 

Mar. 18, do do 2,976 00 

AprillS, do do 2,99131 

May 18, do do 3,007 93 

June 18, do do 3,023 24 

July 18, do do 3,039 05 

Nov. 15, do do 1,230 43 

Dec. 15, do do 1,236 27 

1832. Jan. 15, do do 1,242 11 

Feb. 15, do do 1,247 95 

Mar. 15, do do 1,253 78 

April 4, do do 3,187 58 

15, do do 1,259 61 

May 4, do do 3,190 68 

15, do do 1,265 44 

June 4, do do 3,315 00 

15, do do 1,27127 

July 4, do do 3,128 84 

15, do do 1,277 10 

Aug. 4, do do 3,332 50 

15, do do 1,282 93 

Sept. 3, do do 3,177 88 

15, do do 1,288 75 

Oct. 15, do do 1,294 59 

iTov. 15, do do 1,300 43 

Dec. 15, do do 1,306 27 

Carried forward, $365,974 94 



APPENDIX B. $802,323 RECEIVED. 41 

Brought forward, $365,9^ 94 

1833. Jan. 15, Cash paid note to H. Yates, Treasurer, 1,312 11 

Feb. 15, do do 1,317 95 

Mar. 15, do do 1,323 78 

April 15, do do 1,329 61 

May 15, do do 1,335 44 

June 15, do do 1,341 27 

July 15, do do 1,347 10 

Aug. 15, do do 1,352 93 

Sept. 15, do do 1,358 75 

Oct. 15, do do 1,364 59 

Nov. 15, do do 1,370 43 

Dec. 15, do do 1,376 27 

1834. Jan. 15, do do 1,382 11 

Feb. 15, do do 1,387 95 

Mar. 15, do do 1,393 78 

April 15, do do 1,399 61 

May 15, do do 1,405 44 

June 15, do do 1,411 17 

July 15, do do 1,417 10 

$391,902 43 

SCHEDULE B.— Continued. 

A statement of interest paid by John B. Yates, on his bond and mortgage 
of $55,000, to Union College. 

1831. Nov. 5, Cash paid this day, $2,656 50 

Dec. 3, do do 1,005 50 

1852. Jan. 4, do do 1,010 50 

Feb. 4, do do 1,018 08 

Mar. 4, do do 3,020 50 

April 4, do do 1,025 60 

May 4, do do 1,030 50 

June 4, do do 1,035 50 

July 4, do do 1,040 50 

Aug. 4, do do 1,045 50 

Sept. 3, do do 1,050 50 

Oct. 4, do do 1,055 50 

Nov. 3, do do 1,060 50 

Dec. 3, do do 1,065 50 

1833. Jan. 8, do do 2,996 44 

$19,117 02 

The above schedule of payments, has been made from entries of 
drafts made by J. B. Yates, on the house of Yates & McIntyre^ 
The whole amount of payments may not have been included, and 
possibly some may have been made on another account of indebt- 
edness. By reference to the Treasurer's books and the statements, 
these payments may be exactly ascertained. 



42 APPENDIX B. "1802.323 received. 



SCHEDULE B.— Continued. 

A statement of moneys paid by Yates ^ Mclntyre, for interest on a bond 
of the State of New- York, for the College of Physicians and Sur* 
geo?is, to the New-York Insurance Company, which bond Union College 
covenanted to pay, and indemnify the College of Physicians and Sur- 
geons against, 

1827. May 25, One-half year's interest paid tHs day, $600 

Nov. 30, do do do 600 

1828. Aug. 18, do do do 600 

1829. Jan. 5, do do do 600 

June 12, do do do 600 

Dec. 7, do do do 600 

1830. May 26, do do do 600 

Nov. 29, do do do 600 

1831. May 23, do do do 600 

1832. Jan. 17, do do do 600 

June 6, do do do 600 

1832. Oct. 27, do do do 600 

1833. June 17, do do do 600 

1834. Jan. 4, do do do 600 

July 15, do do do .-...600 

$9,000 

Summary of Schedule B. 

First part, $391,902 43 

Second part, 19,117 02 

Last part, 9,000 00 

~ $420,019 45 

Thus far from the sworn bill of Yates & Mclntyre. — rr-; _ := 

According to the summing up of this schedule, there has been 
paid to the treasurer of Union College, during these years, 

only $420,019 45 

But the two last charges in said schedule are for 
$19,117.02 interest on J. B. Yates' bond of $55,000 
sworn in said bill to hat^e been given as collateral 
merely; and for $9,000 interest on the bonds of the 
College of Physicians and Surgeons, both of which 
payments were claimed to have been paid in error^ and 
were actually repaid^ and must therefore be deducted, 

the two amounting to 28,1 17 02 

Which only leaves to be accounted for, as set forth in 

the first part of said schedule, $391 ,902 43 



APPENDIX B. " $802,323 RECEIVED." 43 

Now there was, {Chancery docs. § 58,) when this contract wa^ 
entered into witli Yates & Mclntyre, July 30th, 1822, by 
Union College, due from the State to said college in its own 

right, $226,476 19 

And in the right of the other institutions which Union 

College purchased out, 95,780 62 

Making, $322,256 81 



To meet this amount, together with the interest thereon, at the 
expiration of twelve years, the college received from Yates & Mcln- 
tyre, including several payments of interest, only $391^902.43 as 
above set forth. 

From the mere inspection of the figures, and without employing 
a skilful accountant to examine the details and make out an interest 
account, it would be sufl&ciently apparent for the common reader, 
that in place of receiving much more. Union College received from 
Yates & Mclntyre much less than the principal and interest on the 
original grant made to it by the State ; and much less than the 
principal and interest on the grants to the other institutions which 
said college purcliased out. But to satisfy the Hon. Senator, that 
he has been misguided by Mr. Hemingway, such an accountant 
has been employed ; and to say nothing of the labor and care which 
the supervision of the Literature Lottery occasioned, and nothing 
of the hazard to which the absolving of the State from all respon- 
sibility exposed the institution ; to say nothing of this — that 
accountant having compared Schedule B with Schedule D, (see 
Appendix K, which contains, as will be seen, the final settlement,) 
found that the total payment of principal, between the 30th March, 
1823, and the 15th July, 1834, according to the sworn schedules 
of Yates & Mclntyre, after deducting certain small amounts of in- 
terest included therein, in place of being, as stated by the Hon. 
Senator, $802,323 .28, was only $370,124. 50 ; and that the annual 
payments in the abstract furnished by him, were in like manner 
exaggerated, as will be seen by the statements hereunto subjoined. 



44 



APPENDIX B. $802,323 RECEIVED. 



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APPENDIX B. $802,323 RECEIVED. 45 

But Yates & Mclutjre further charge in said bill *'that they 
have also made to the President of Union College other separate 
and distinct payments in discharge of their obligation to pay two 
and one-quarter per centum, wliich payments are particularly 
set forth in scliedule C, with the time of such payment, and 
which schedule C they also charge to be true, and which was made 
from tlieir books, and your orators charge the same to be correct 
and true." 

SCHEDULE C— From Sworn Bill. 

A statement of payments made by Yates ^ Mclntyre, for the Trustees 
of Union College, to the Fund, denominated the President's Fund. 

1823. May 31, Cash paid H. Yates, Treasurer, $1,309 00 

July 30, do do 2,754 50 

Oct. 18, do do 2,695 00 

Dec. 11, do do 3,430 00 

1824.Mar. 29, do do 6.727 50 

Sep. 1, do do 6,844 00 

1825. Jan. 11, do draft to D. Boyd, 9,173 25 

Apr. 13, do H. Yates, Treasurer, 3,849 75 

Aug. 6, do draft to D. Boyd, 6,844 00 

Oct. 10, do do 5,148 00 

1826. Mar. 18, do do 3,079 80 

June 18, do do 6,936 60 

July 3, do do 7,000 00 

1827. Jan. 31, Bond, J. D. Hammond, (int. from 1st May, 1826,) . . . 5,000 00 

1829. Aug. 4, Cash, paid note to E. Nott, 5,350 00 

Sep, 4, do do ...' 5,379 16 

Dec. 4, do do 2,733 34 

1830. Jan. 4, do do 2,747 91 

Feb. 3, do do 2,762 50 

Mar. 4, do do 2,777 07 

Apr. 3, do do 2,79166 

May 4, do do 2,806 24 

1831. Aug. 6, do do 3,099 90 

Sep. 16, do do 3,009 50 , 

Oct. 4, do do 3,149 36 

Nov. 4, do do 2,024 69 

Dec. 4, do do 3,170 92 

1832.Jan. 4, do do 3,078 00 

Mar. 4, do do ....3,048 52 

May 4, do do 3,078 69 

[D=- KT- KT" $122,798 84 



46 APPENDIX B. 

Schedule C exhibits the amount of the per centage granted by 
law for the expenses of managing the lotteries, which was, according 
to contract, paid to the President of Union College, {Chan. doc. § 36.) 
to whom the supervision and management of the same was exclu- 
sively committed, [Chan. doc. §27.) 

The whole amount of principal so paid, as stated by the Hon. 
Senator (see his report, page 98,) was §111,343.41. Of this sum 
(after paying all expenses,) there remained $54,455 . 14, as a com- 
pensation for services rendered and hazards run during the contin- 
uance of the Literature Lottery. 

If the President was disposed to relinquish his claim to this per 
centage, granted by law as a compensation for services and liazards, 
he had a riglit to do so ; but that the State should require Union 
College to account for this per centage, paid to the President 
according to law for supervision and management, would be suffi- 
ciently absurd. Not however, to insist on this ) and though to the 
amount of schedule B, which, as stated above, was. . $370,124 50 
there should be added the entire amount saved by 
the President from the 2| per cent granted by the 
State for supervision, w'licli amount was, 54,455 14 



Still, the entire amount received by Union College 
between the 31st March, 1823, and the 15th Decem- 
ber, 1835, in place of being $802,323 . 28, as charged 
by Senator Beekman, would be, (even after this 
gratuitous augmentation,) according to the oaths of 
A. Mclntyre and J. B. Yates, only §424,579 64 



Of tins whole sum received by Union College nearly one-third 
belonged to other institutions ; so that, including even all the Pres- 
ident saved from the percentage granted for management. Union 
College never received, by many thousand dollars, as much as it 
would have received had the $200,000 granted in 1814 been duly 
paid. 

So much for the $802,323.28 charged to have been received by 
Union College, page 9th and 96th. 



APPENDIX C. FRAUDULENT TRANSFERS. 47 



(C.) 

' So that he transferred to his own college within two years after its 
purchase for $17,500, the same property for $150,000," as charged 
page 13. 

That these transfers were all necessary, and that they were all 
made in furtlierance of the President's desire to secure to Union 
College the ultimate possession of the property which he purposed 
to bestow upon that institution, will be seen from the documentary 
evidence that follows : — 

That the President purposed to appropriate not only his interest 
in the 2i per centage, but also his entire interest in whatever else 
he might receive for advances made and hazards run during the 
drawing of subsequent lotteries in which Union College had no 
interest, is apparent from his report to the Trustees in 1832, in which 
he says : 

" For whatever profits shall arise from tickets sold in the Con- 
solidated Lottery, over and above the original amount of tickets 
in the Literature and Fever Hospital Lotteries, reckoned at their 
scheme price, the subscriber will be entitled, by contract, to share 
the same with Yates & Mclntyre ; and whatever the amount so 
shared by him may be, it is stilly as it ever has been^ his design to 
appropriate the same in manner aforesaid; a design thus formally 
expressed that the Trustees may he induced to take measures for 
obtaining any contingent residuary benefits that may accrue to them, 
conformably to provisions that wall be found in the will of the 
subscriber, should his own life not be spared till said lottery is 
closed, and a settlement effected between him and the contractors, 
agreeably to stipulations formally entered into by them, and which 
will be found on file among his papers. 

" All which is respectfully submitted, 

"ELIPHALET NOTT." 

July, 1832. (§522.) 

And that he stood ready to carry this provision into effect at the 
earliest practicable period, is apparent from the following communi- 
cation made to the Board of Trustees from the finance committee : 



4S APPENDIX C, FRAUDULENT TRANSFERS. 

" Whereas, Dr. Nott has signified to the committee his readiness 
to transfer to Union College, not only its entire portion of said 
lands and bonds and mortgages, to be held in its own right, but 
also the portion belonging to himself, on the terms heretofore set forth 
in his reports to this board for the years 1831 and 1832, as soon as 
the same shall be definitively ascertained. ***** 

'' And further, that the Treasurer be also authorized to receive 
from Dr. Nott in like manner, the remaining portion of said addi- 
tional amounts which shall be found to belong to him, and enter 
tlie same In a separate fund, to be denominated Dr. Nott's Fund, 
and to be held and applied conformably to the aforesaid report 
of Dr. Nott to this board, of July, 1831, and that a separate annual 
report be made, hereafter, thereon to this board." 

I certify the above to be a true extract from the minutes of the Board of Trus 
tees of Union College, of a meeting held at Schenectady, July 26th, 1837. 
Nov. 28, 1851. L. H. WILLARD, Acting Register. 

Why then was the remaining property alluded to, not forthwith 
conveyed to Union College 1 and why was the real estate which 
had been conveyed to the college in trust, reconveyed ? The 
following documentary evidence will give the answer : 

Chancellor Walworth's Certificate. 

" I was consulted some years since by Dr. Nott, the President 
of Union College, as to the manner of conveying or devising certain 
property, to a very large amount, which he desired to give to the 
College, in trust, to establish certain professorships, or otherwise, 
to promote the cause of education in that institution, which 
property had risen from a certain per centage, which Yates & Mc- 
Intyre had agreed to give him on the proceeds of certain lotteries, 
as compensation for his services and risks in raising monies 
to save them from bankruptcy. I came to the conclusion that he 
could not convey or devise the property to the institution legally, 
upon the proposed trusts, which were not such as the revised 
statutes authorized. And as he expressed the apprehension that 
he might possibly die before he could get a law passed authori- 
zing the proposed trusts, I therefore advised him to convey the 
property absolutely, taking such a writing from the treasurer or 



APPENDIX C. FRAUDULENT TRANSFERS. 49 

other proper officers of the corporation that he was entitled to control 
or direct the application of the property at any time during his life; 
and that he could, in that case, after he had obtained the passage of 
the proposed law, take a recoriveyance of the property, and convey or 
devise it to the corporation upon the contemplated trust. I also 
know Judge Paige was also consulted on the subject, and that he 
concurred with me in opinion. 

REUBEN H. WALWORTH." 
Saratoga Springs, JVov. 21, 1851. 

On learning that it was doubted whether the college could 
hold property in trust without special law for that purpose, the 
President hastened to procure, and did procure. May 14th, 1840, 
the passage of such a law, in the words following : 

" The People of the State of JYew-York, represented in Senate and 
Assembly, do enact as follows : 

" Sec. ] . Real and personal property may be granted and con- 
veyed to any incorporated college or other literary incorporated 
institution in this State, to be held in trust for either of the fol- 
lowing pnrposes : 

" 1 . To establish and maintain an observatory ; 

"2. To found and maintain professorships and scholarships ; 

"3. To {)rovide and keep in repair a place for the burial of the 
dead ; ur, 

"4. For any other specific purposes comprehended in the 
general objects authorized by their respective charters. The said 
trusts may be created, subject to such conditions and visitations 
as may be prescribed by the grantor or donor, and agreed to by 
said trustees ; and all property which shall hereafter be granted 
to any incorporated college or other literary incorporated insti- 
tution in trust for either of the aforesaid purposes, may be held 
by such college or institution upon such trusts, and subject to 
such conditions and visitations as may be prescribed and agreed to 
as aforesaid." (See note page 51.) 

The following amendment to this act was procured to be passed 
by the President, April 21, 1846 : 
4 



50 APPENDIX C. FRAUDULENT TRANSFERS. 

'^ The People of the State of JVew-York^ represented in Senate and 
Assemhly^ do enact as follows: 

"Sec. 1. The income arising from any real or personal pro- 
perty granted or conveyed, devised or bequeathed in trust to any 
incorporated college or other incorporated literary institution, for 
any of the purposes specified in the " Act authorizing certain 
trusts," passed May 14th, 1840, for the purpose of pro\ iding 
for the support of any teacher in a grammar school or institute, 
may be permitted to accumulate till the same shall amount to a 
sum sufficient, in the opinion of the Regents of the University, to 
carry into effiect either of the purposes aforesaid, designated in said 
trust." 

Having obtained tlie requisite legal provisions, the President 
acted in accordance with the same, as will appear from the fol- 
lowing certificates : 

Judge Paiges' Certificate. 

" I do hereby certify, that after the President of Union College 
procured the passage of the act of May 14, 1840, authorizing 
literary incorporated institutions to receive grants of real and 
personal property to be held in trust to found and maintain pro- 
fessorships and scholarsliips, and for other purposes, he applied 
to me to prepare, under the advice of Chancellor Walworth, a 
conveyance from him to the Trustees of Union College of certain 
real and personal estate to be held by the latter upon the trusts 
authorized by said act. Jlnd I do further certify^ that I accord- 
ingly prepared such a deed of trust and submitted the same to Chan- 
cellor Walworth for revision and correction^ and that the Chancellor 
revised and corrected the same; and that such deed of trusty after if 
was so revised and corrected, was delivered by me to Dr. E. JYott. 

"Nov. 19, 1851. A. C. PAIGE." 

A. Holland's Certificate. 

" I hereby certify, that President Nott, after having procured 
the passage of the act of May 14th, 1840, authorizing literary in- 
stitutions to hold real and personal estate in trust, did employ 
Judge Paige to make out under the advisement of Chancellor 
Walworth, a trust deed to Union College of certain real and per- 



APPENDIX C. FRAUDULENT TRANSFERS. 51 

sonal estate to a large amount, in accordance with the Annual 
Reports to the Trustees, made by him in the years 1831, 1832 
and 1833 ; and that such deed was duly executed, acknowledged 
and placed in possession of the Treasurer of said College, with 
written instructions to deliver the same to the Board of Trustees 
on the event of his death ; and that such trust deed has been, and 
continued and still remains deposited in the office and in the keep- 
ing of the treasurer of said College. 

ALEX. HOLLAND, 
Treasurer of Union CollegeP 
JVovemfeer 11, 185L 

It is hoped that tlie transfers and retransfers complained of (page 
12 and 13) will have been, (even in the opinion of the Hon. Sena- 
tor) by the preceding explanations^ satisfactorially accounted lor. 

(NOTE FROM PAGE 49.) 

An act in addition to the " act authorizing certain trusts," passed May 14, 1840. 

Passed May 26, 1841. 

The People of the State of New -York, represented in Senate and Assembly do enact as 
follows: 

§ 1. Devises and bequests of real and personal property in trust for any of the purposes for 
which such trusts are authorized under the " act authorizing certain trusts," passed May 14, 
1840, and to such trustees as are therein authorized, shall be valid in like manner as if such 
property had been granted and conveyed according to the provisions of the aforesaid act. 



53 APPENDIX D. "president CLAIMED $111,343." 



(D.) 

"J^ is extremely doubtful hoiv far the Trustees had the power to author' 
ize their President to claim as his own so large a portion of the avails 
of the lottery as Slll,3-i3," as stated page 99. 

FACTS furxishi:n^g the solution. 

On the 13th of April, 1814, an '' Act instituting a lottery for the 
promotion of literature," was passed. In this act there was granted 
to several public institutions $322,256 . 81, together with the inter- 
est thereon for six years, within which time it was estimated that 
the same could be raised and paid. 

Such, however, were the delays and losses attending the drawing 
of this lottery, that at the expiration of eight years, not even the 
interest had been paid, and there was no prospect of the payment 
of the principal within any definite period. In this state of tlungs, 
and foreseeing that by losses and mismanagement the lotteries 
might be perpetuated through another generation, if managed by 
the State, the Legislature passed, April 5, 1822, the " Jict to limit 
the continuance of lotteries^^ proffering to the institutions the super- 
vision and management of the same. 

This act expressly recited, that " all that could thus he saved would 
go to diminish the loss of said institution.^^ But as a clause was 
inserted, absolving the State from all responsibility for the ultimate 
payment of grants to the institutions, they were unwilling to run 
the hazard of accepting the same. 

The Literature Lottery from which these several grants were to 
be paid, was, according to the Deputy Comptroller's certificate, 
(See Chan. Doc. § 54,) assumed to contain (§ 43 A.) tickets amount- 
ing, at their scheme price, to §4,492,800. And the allowance to 
managers for services and expenses, was 2J per cent on the succes- 
sive schemes. There was due at this time (§§ 50, 58) to the lite- 
rary institutions $322,256 .81, to wit : 



APPENDIX D. PRESIDENT CLAIMED $1115343. 58- 

Union College, |226,476 19 

Hamilton College, $45,279 74 

Asbury African Church, 4,529 30 

College of Pliysicians and Surgeons, N. Y., 33,971 58 

Historical Society, 12,000 00 

^j $95,780 62 

$322,256 81 



As no interest had been paid on these grants for two years, and 
as the provision for the payment of interest had expired, the insti- 
tutions being generally in debt, were greatly embarrassed. 

In this emergency, the President of Union College proposed 
to purchase out all the other institutions, and having done so, to 
run all the hazards incident to the drawing of said lottery, with 
no other security for indemnity against loss, or compensation for 
expenses and services than the 2| per cent, already granted by 
law for that purpose ; provided the supervision and management 
of said lottery was committed exclusively to him. Whereupon 
the Board of Trustees passed a resolution committing exclusively 
to him the supervision and management of the same, and vesting 
him wath all the powers in relation thereto possessed by the board 
itself — [Chancery Docs. § 27.) 

And in the execution of tliis trust the President proceeded, on 
the 29th of July, 1822, to approve a contract (§§ 29 to 43) by 
which all the right and title of Union College^ in their own right, 
and in representing the other institutions^ in and to the whole amount 
of tickets authorized to be sold by virtue of said act of bth of April, 
1822, was transferred to Archibald Mclntyre and J. B. Yates. In 
consideration of which transfer Yates & Mclntyre agreed to pay 
to Union College $276,000, in ten years, together with the interest 
tliereon ; and to deposit in bank to the credit of the President, 
after the drawing of each class, for supervision and management, 
the same 2\ per centage which had heretofore been paid to lottery 
managers appointed by the State. — [Chancery Docs. §§ 29 /o 43.) 

It is proper here to observe, that $276,090.14, paid dow^n or 
paid with interest, is equal to $393,120, (the sum due the insti- 



54 APPENDIX D. "president CLAIMED $1115343." 

tutions) paid without interest in ten years in equal annual instal- 
ments, which was the time specified in the contract for the drawing 
of the lottery and the payment of the $276,090.14 stipulated. 
(§§43, 50.) 

Such were the circumstances under which the supervision of the 
lottery was committed by the trustees to the President, and such 
w'ere the conditions of the contract whicli he approved, for the 
drawing of the same. 

But in the execution of this contract, owing to a speculation (un- 
connected with the lotteries) entered into by the contractors with- 
out his knowledge, they became involved to such a fearful extent, 
that the President was not only obliged to pledge his own private 
property, and the property of his wife, but also to implicate hia 
friends in very large amounts, to save Yates & Mclntyre from bank- 
ruptcy. As a requital for these personal advances and hazards, 
they stipulated to pay him " such an additional sum as, together with 
the $276,000 which they were holden to pay, should amount toll per 
cent on the whole amount of tickets sold or to he sold in said lottery ^ 
{Chancery Doc, §80, 81.) 

StiU, and notwithstanding the peril which this embarrassment 
of Yates & Mclntyre occasioned, the advances it required, and the 
delay it caused, the entire amount of the grants, (which it was 
computed by the Comptroller would require, under the supervision 
of the State, eleven years to raise and pay, (§ 50,) and which Yates 
& Mclntyre computed would require ten years to raise and pay,) 
was all, under the supervision of the President, raised, and the 
institutions settled with, the 2^ per cent deposited to the credit of 
the President, and the lottery itself finally closed in less than five 
years from the commencement of said supervision. So tliat how- 
ever doubtful, in the estimation of the Hon. Senator, the right of 
the trustees may have been to place the 2J per cent at the disposal 
of the President, (which but for this must have remained at the 
disposal of the State managers, who, after eight years, had failed to 
pay even tlie interest,) it does not appear that either the institutions 
or the public suffered very materially by the cliauge. 



APPENDIX D. ^* PRESIDENT CLAIMED $111,343." 55 

But though, in the judgment of the Hon. Senator, " it is ex- 
tremely doubtful whether the Trustees had the power to authorize the 
President io claim as his own so large a portion of the avails of the 
lotteries " as the 2^ per cent allowance for supervision and man- 
agement, (tliougli the act of April 5th, 1822, expressly authorizes 
them to do so (§20), and though this is the precise compensation 
the State had previously allowed for the performance, without run- 
ning any hazard, for tlie same services,) still, large as this compen- 
sation was^ in the judgment of the Hon. Senator, (now^ tliat the re- 
sponsibility had been transferred from the State to other hands,) it 
•was not sufficiently large to induce any of the institutions, though 
greatly in w^ant of means, or any of their officers, to run the hazard 
which, under existing circumstances, tlie supervision and manage- 
ment of the Literature Lottery involved. 

No Trustee of Union College even codperated with the President, 
or contributed anything tow^ards furnishing the advances required 
to purchase out tlie interests of the other institutions, amounting 
(§ 58) to |95,780.(i2 ; nor, after they had been purchased out, did 
any other Trustee consent to furnish any portion of the large 
amount of funds required to be raised, or to share any portion of 
the responsibility required to be assumed to prevent the threatened 
bankruptcy of Yates & Mclntyre, and the ultimate failure of the 
lotteries. This whole enterprise, which, by the other Trustees, 
was deemed too perilous to be undertaken, was undertaken and 
executed by the President alone. He alone, therefore, could right- 
fully have been authorized to claim this per centage. 

But for W'hat purpose did the President claim it, and to what 
object did he devote it? This question he has himself answered 
in his report to the Trustees, July, 1833. With respect to so much 
of this 2| per centage as remained after tlie payment of the man- 
agers, and of the other expenses incurred, he says : 

" In relation to the President's fund, held in trust for the institu- 
tions interested therein, and which arose out of the Literature 
Lottery, afterwards merged in the Consolidated Lottery, it is only 
necessary to observe, that one portion tliereof lias already been 



56 APPENDIX D. "president CLAIMED $111,343." 

paid into the treasury of this board ; another portion deposited 
in the Mohawk Bank, and the residue invested in bonds and 
mortgages. 

" As to the additional lottery avails, arising out of the act au- 
thorizing the mixing of Albany land prizes with the money prizes 
of the other lotteries, passed 1826, little need be said, as the rights 
and claims of the respective parties interested therein, remain the 
,ame, as stated at length in the last report." {Chancery Docs., 
§549,550.) 

It is hoped that the question so " exceedingly doultfulj'^ as to the 
right of the Trustees to allow the President to claim so large a portion 
of the avails of the lotteries as $111,343.44, as his own^ while acting 
as the chairman of the committee of finance^ (as stated page 15,) will 
have been, (even in the opinion of the Hon. Senator,) by the pre- 
ceding explanations, satisfactorily answered. 



APPENDIX E. 57 



(E.) 

'* The indiscriminate use of funds carried to a much greater extent, and 
continued for greater length of time,'' ^ as stated page 18. 

" New- York, Jan'y 23d, 1826. 
" Dear Sir: — Since my visit to Schenectady my mind has been 
in a very perturbed slate, in consequence of my anxious appre- 
hensions for ourselves and our friends. I am satisfied if we are 
sustained for six months, or at furtherest for a year, we can save 
ourselves, the college and our reputation. Our golden dreams for 
ourselves have vanished. 

"With respect, I am, 

" Yours, &c., 

J. B. YATES." 
" Rev. E. NoTT, D. D." 

(^Chancery aocs. § 90.) 

" I acknowledge to have received from Dr. Eliphalet Nott, a 
check on the President's Fund for fifteen thousand dollars, and 
also his endorsement on three drafts on Yates & Mclntyre for fif- 
teen thousand dollars, one third at forty days, one third at sixty 
days, and one third at ninety days which is to indemnify him of 
the payment, and when paid, the check wjiich is delivered to the 
cashier of the Mohawk Bank, is to be given up, the same being 
done to enable Yates & Mclntyre to pay off their lottery prizes. 

" Schenectady, July 17, 1828." 

(§171.) HENRY YATES." 

New- York, Sept. 2eth, 1828. 
Dear Sir: — We are now drawing to a close with our arrange- 
ments in consequence of our foolish and temerarious speculations ; 
and we have entered into solemn written stipulations not to ac- 
cept or become responsible for another without the consent of all 
the partners, nor engage in any purchase or speculation as a 
house. All, therefore, we have now to do, is to place our load 
in such a shape as not to be continually bearing upon us. I wish 
you, with my brother, would try to devise some plan by which 



58 APPENDIX E. ' INDISCRIMINATE USE OF FUNDS." 

this can be done. The banks here are getting tired of us. I 

think a bold negotiation for a loan with the means you have, 

would be a service to the College, as well as ourselves. You and 

my brother Henry are the only persons with whom I speak. 

The sooner a state of things is produced by w^hich we mutually 

depend on each other, the better. We are now as it w^ere on a 

magazine of powder, with a torch in the hand of a man w^lio can 

blow us up at pleasure ; and if anything happens to stop us, I am 

as w^ell assured as I am of my existence, that no other lottery under 

the present grants will ever be drawn in the State of New- York. 

" Yours, truly, 

" J. B. YATES." 
"Rev. E. NoTT, D. D." 

{Chancery docs. § 180.) 

New-York. Oct. 8th, 1828. 
" Rev. and Dear Sir: — * #***#* 

I feel most sincerely grateful for the liberal course you have ob- 
served towards us. Without that liberal policy adopted hy you^ 
we should probably have been ruined. I cannot now, however, 
doubt of ultimate success ; and I am w^ell satisfied that your libe- 
rality has not only been advantageous to us, but in the end, it 
will be so to the College, and that you will have great satisfaction 
in reviewing what you have done. * * # # # 

" Your very obedient servant, 

" A. McINTYRE." 
"Rev. E. NoTT, D. D." 

(^Chancery docs. ^206.) 

New-York, Oct. 25, 1828. 
" Dear Sir— We duly received from Mr. Brow^n the money left 
with him by Capt. Holland, being the avails of the note discounted 
by you at the Farmers' Bank, Troy. ***** 

(§215.) " HENRY YATES." 

New- York, Sept 28, 1829. 
My Dear Sir — We felt confident that we could get along 
wdthout troubling you, but unexpectedly the banks have thrown 
our paper out, which discourages us extremely, as tliis is a very 
heavy week ; we have becoming due the remainder of the notes 
assumed of Wood's estate, to the amount of about $12,000, and 



APPENDIX E. " INDISCRIMINATE USE OF FUNDS." 59 

for Albany lands, and in all about $20,000. The brokers are not 
able to purchase drafts as usual, so that there is no alternaiive hut 
to CALL ON YOU. I do it wltli rduclance^ as we have had five thou- 
sand so recently, but since that have paid off a five tliousand that 
was due in July, at the Commercial, and one of the same amount 
at the Mechanics' and Farmers'; we shall want both^ and indeed I 
cannot see how to get along without. * * # * * 

"I would not again trouble you, if I did not deem it absolutely 

necessary. 

" Very truly, yours, &c., 

'' HENRY YATES. 

" Dr. NoTT." (§§ 276, 278.) 

New- York, JYov. 23d, 1829. 

'• Rev. Dear Sir, — # * * # ^r^ received this morning from 

Mr. Brown $6,844.18, delivered him for us by you. * * * * 

"A. McTNTYRE. 
"Rev. Dr. Nott." {Chancery Docs. § 294.) 

" New- York, Dec. 23rf, 1829. 

" Rev. Dear Sir, — Your letter of tlie 18th only reached me this 
morning. The proceeds of the Vail mortgage, which you were so 
good as to provide for us, have been accounted for or paid to us by 
Mr. Brown. ***** A. McINTYRE. 

" Rev. E. NoTT, D.D." {Chancery Docs. § 304.) 

"P. S. Mr. H. Yates returned this morning with the money 
you kindly provided." (§ 308 a.) 

" New-York, Jan. 9, 1830, {Evening.) 
" Rev. Dear Sir, — * * * * All the sums you kindly pro- 
vided for us have been duly received, except that to be paid on the 
12th, which we shall look for on Wednesday next. 

"I did hope and believe that w^e should be able, by the 1st of 
February, to pay Oakley and Wilkinson the whole amount due them, 
or at any rate, so much as will get your property released. In 
this however I shall be disappointed. But those gentlemen have 
been informed by us, that w^e wall discharge the debt in the spring. 



60 APPENDIX E. " INDISCRIMINATE USE OF FUNDS." 

Then it must be discharged ; sooner it cannot be, which I exceed- 
ingly regret. * ^ * * * * A. McINTYRE." 
" Rev. E. NoTT, D. D. (§§316,317.) 

" New-York, March 5, 1830. 
" Rev. and Dear Sir, — Your letter of the 27th ult. came to hand 
yesterday morning, and we received, the day before, from Mr. 
Brown, the proceeds of the two mortgages which we sent you. 
The money came most opportunely, for without it, I know not how 
w^e should have got through the heavy payments of this week, 
amounting to upwards of $32,000. 

" We are perfectly aware that you could invest your funds in 
this State at seven per cent, and if there was not a positive neces- 
sity for it J we would not ask you to take a transfer of bonds and 
mortgages received by us in the course of our business, bearing 
only six per cent. You know our situation, and that it is by con- 
stant struggling we are enabled to get along at all. It is well for 
us J and for you too, that you take a right view of our concerns^ and 
afford us all the reasonable aid in your power. Without that aid we 
should have been ruined. 

"There is one other mortgage which we expect daily from 
Philadelphia, of |3,600, and this also we must send you, relying 
on your taking it and paying us for it. I know we shall be in 
need of the proceeds. 

" The 1st of May is the time which we allotted for discharging 
the debt of Oakley & Wilkinson, and to get your securities released. 
We purpose, without fail, to effect so desirable an object to you 
and to us, by that time. It may be that we may, before then, 
have bonds and mortgages which we may wish to transfer to raise 
a portion of the amount of this debt. If so, we must rely on your 
assistance. * # # * * A. McINTYRE." 

« Rev. E. NoTT, D. D." (§§ 335, 336, 337, 338.) 

"New-York, Fe6. 2, 1830. 
" Tiev. and Bear Sir, — The $5,000 which you were so good as to 
send us, through Mr. John B. Yates, have been received. * * * 

YATES & McINTYRE." 
"Rev. E. NoTT D.D.'' (§322.) 



APPENDIX E. "indiscriminate USE OF FUNDS." 61 

New-York, Aug. 5, 1830. 
" My Bear Sir — With the money I procured from you last 
week, and what we could collect from our offices abroad, we 
shall scarcely get through this w^eek, having a very heavy week 
to meet next week ; must therefore ask you to have two more 
drafts discounted^ so as to have it here before the tenth inst., or 
one of $10,000 which Mr. Gregory prefers at 90 days; he thinks 
witli ordinary success we can meet it. I am very sorry to trouble 
youj but I can see no alternative. I have dated the draft on Satur- 
day. 

" I am, very truly, your friend 

" Dr. NoTT." HENRY YATES." 

(§383.) 

"New-York, Sept. 11, 1830. 

''Rev. Dear Sir — We are favored with your letter of the 9th, 

informing us that you liad made arrangements for obtaining for 

us the $20,000 we wanted for the troublesome madman Vannini. 

* * * * " YATES & McINTYRE." 

" Rev. E. NoTT, D. D." 

(§386.) 

New- York, Dec. 30, 1830. 
" Rev. Dear Sir — It becomes necessary for us, in the course of 
this winter and early part of spring, to pay Messrs. Seaman, Tobias 
& Co. $20,000 on account of a debt we owe them, and we are com- 
pelled to look to you for aid to enable us to do it. 

"Permit us to request, then, that you make us an advance ot 
the sum required for this purpose, on account of your share of 
the Albany lands. The payment of the twenty thousand dollars 
may be made to suit your convenience, either in instalments, or 
in one sum, the whole to be received by us, however, before the 
1st of April. * # # * 

" Very respectfully, 

" Your most ob't serv'ts, 

YATES & McINTYRE." 
"Rev. E. NoTT, B. D." 

{Chancery Docs., §§416, 417.) 



62 APPENDIX E. " INDISCPJMINATE USE OF FUNDS.''' 

New-YorKj Sept. 26th, 1831. 
Rev. Dear Sir — * * * # # rpj-^^ banks 

refuse to discount a dollar for us. We fear, therefore, that we may 
be compelled, however reluctantly, to call on you for aid before very 
Loii p* Tt^ w ^ ^ ^ ^ 

" We are, Rev. dear sir, with great respect, 

" Your most obedient servants, 

" YATES & McINTYRE." 
« Rev. E. NoTT, D. D." (^Chancery Does.., § 453.) 

"New-York, Oct. M, 1831. 
" Rev. Bear Sir — We have for the last two months been pecu- 
liarly unfortunate, and we may, on this account, again be com- 
pelled to look to you for assistance to pay our prizes. We have 
several heavy ones now out, and among them one of |50,000. 
We shall avoid, if possible, to trouble you, but necessity may 
oblige us, and we think it best that you should at once he ifipprised 

of this state of things. 

i 

" The necessity of callmg upon you for aid, is greatly increased 
by the money pressure now^ in this city. The banks refuse to dis- 
count for usy although we have not been refused before. * * 
" We are. Rev. dear sir, with great respect, 

" Your most obedient servants, 

"YATES & McINTYRE." 
« Rev. E. NoTT, D. D." {Chancery Docs.., §§455, 456.) 

"New- York, Oct. 22,1831. 
" Dear Sir — We find that we will want your aid by the last of 
next week. There is more difficulty in getting discounts at the 
bank, and our prizes must be redeemed. Annexed I send you 
two drafts of $5,000 each ; it may be necessary to increase it — ^if 
so, I shall send as soon as it is ascertained. 

" Yours, &c., " H. YATES." 

"Dr. NoTT." {Chancery Docs., ^4:Q6.) 

" New-York, Oct. 24, 183K 
" My Dear Sir — 1 find that the appearance of things to get aid 
here so much against us, that I am obliged to ask you to procure 



APPENDIX E. "indiscriminate USE OF FUNDS." 63 

for us an additional $5,000, for which I send you a draft. I 

hope Mr. Boyd will be able to do it for the Mohawk Bank. This, 

with the two drafts for $5,000 each, sent on Saturday, I think 

will help us through. 

" Very truly your friend, 

H. YATES." 

" Dr. NoTT." (^Chancery docs. § 467.) 

" In addition to $5,000 loaned to J. B. Yates on the 1st Sept. 
1827, and $5,000 on the 14th of Jan. 1828, responsibilities were 
assumed in his behalf at the Farmers', Troy, and Mohawk Banks, 
as will appear forom the following certificates : 

" Thomas Shelding, 

^' To Yates & Mclntyre, J. Converse and others. 

" 1829, Aug. 13, due 1830, Aug. ] 5—18, $963 52 

do do 1831, do 15—18, 1,026 52 

do do 1832, do 15—18, 1,089 52 

" Dr. E. Nott was endorser on the above notes. 

" P. WELLS, Teller, F. B. 
" Farmers^ Bank, August 5//i, 1834. 

" Thomas Shelding — note endorsed, 

" J. B. Yates, Yates & Mclntyre, E. Nott, I. & J. Converse. 

" Three notes endorsed the same. 

" One payable 27th Aug. 1830, $945 29 

"One do do 1831, 1,007 08 

"One do do 1832, 1,068 80 

" Said notes were the property of the Bank of Troy, and have 
been cancelled upon the books of said bank. 

Uh Aug, 1834. S. W. DAUCHY." 

" J. B. Yates' note endorsed by E. Nott, for $12,000 was dis- 
counted on the 19th of Jan. 1831, for the benefit of J. B. Yates, 

in the Mohawk Bank, and paid on the 

" V. FREEMAN, ClerkP 
(§478,479,480,481.) 

" It gives me sincere pleasure, that we have been aole at length 
to get released your property, which you kindly hypothecated to 
raise funds for us in 1286, to save us at a critical moment from 



64 APPENDIX F. " HIS DUTY TO ENQUIRE." 

ruin the papers necessary to give you legal possession of your 
property, you will receive herewith. And now that this is ac- 
complished be pleased to accept of my sincere thanks for the 
important service you rendered us in this particular, and be as- 
sured that I shall never cease to hold the favor in grateful remem- 
brance. " I am, Rev. dear sir, 

^' With sentiments of profound 
" Respect and esteem, your most ob't serv't, 
« Rev.E.Nott, D. D." (§ 367.) A. McINTYRE." 

" So much with respect to the " indiscriminate use of College 
funds." (Complained of page 16 and 18.) 

(F.) 

Then was it his duty to inquire as stated at page 19 — also page 10. 
Letter of John A. Dix and J. P. Cushman to H. Yates. 

"Albany, Dec. M, 1834. 

" Sir — In obedience to the directions contained in the foregoing resolution" 
[a resolution of the Trustees directing their finance committee to take measures 
to render available the claims of the College against any of its agents on 
account of receipts from the Literature Lottery,] "the finance committee 
have had the subject under examination ; and they perceive that you were 
authorised by their resolution of the 24th July, 1822, in relation to the 
Literature Lottery, to perform certain acts in behalf of the Trustees of the 
College, as their treasurer under the supervision of the president ; that you 
went in that capacity, with the consent of the president, to the city of New- 
York ; that while there you received your salary from the College, and that 
other allowances were also made to you for your services and expenses. 
The committee have recently learned that while acting in that capacity, you 
became a partner of the firm of Yates & Mclntyre, and interested in their 
profits. The committee conceive that among the rights acquired by the 
College, are those which have grown out of your proceedings, in becoming 
interested in the management and drawing of the lotteries while employed 
and acting as the agent of Uunion College ; and your participation, while so 
employed in the profits of the lotteries, in which the College was interested ; 
and we deem it our duty to apprize you, that we claim these profits as 
rightfully belonging to the College. 

" We have therefore respectfully to ask, that you will furnish the com- 
mittee with a copy of the articles of co-partnership entered into between you 
and the house of Yates & Mclntyre, referred to in their bill of complaint 
recently filed against the trustees of the College, together with a statement 
of all your operations in pursuance of those articles of co-partnership ; that 
you will also furnish them with a full and detailed account of all moneys, 
stock and other property received by you from the profits of said co-part- 
nership, or in any way growing out of said connection ; and that you will 
also furnish a detailed account of all moneys, stocks and other property, in 
which you have in any form become interested, by virtue of your said co- 
partnership connection with said house during your said agency. 
" We are very respectfully, yours &c., 
(Signed) JOHN A. DIX, 

JOHN P. CUSHMAN, ^ 
in behalf of the finance committee." 



APPENDIX F. ^' HIS DUTY TO ENQUIRE." 65 



Immediately alter the President had assumed the requested 
responsibilities, and assisted in raising the requisite funds for 
preventing the tlireatened bankruptcy of Yates & Mclntyre, 
A. Mclntyre, one of the partners, writes the President, January 
23d, 1826, as follows :— 

{Chancery Docs. § 86 and 87.) 

" We have had a lesson sufficiently appalling and distressing to 
keep us in very constant remembrance of it during life." 

" As, however, I am more than ever sensible of the frailty of 
human nature, and the uncertainty of all earthly calculations, I 
am anxious, above all things in this world, to get through with our 
present engagements without ruin to ourselves and our friends; 
and I have tliouglit tliat the presence and advice of Mr. Henry Yaiei 
here^ for as much of his time as he could possibly spare with us 
might be useful. He has consented to come, and we shall provide 
as liberally as we can for his sacrifice. Perhaps you too can, with 
propriety, make him an allowance, on account of the increased 

SAFETY OF THE COLLEGE." 

On the same day J. B. Yates j the only other partner, writes the 
President as follows : 

(Chancery Docs. § 90.) 

" I AM SATISFIED IF WE ARE SUSTAINED FOR SIX MONTHS, OT at the 

furthest, for one year, we can save our friends, the college, and our 
reputation. Our golden dreams for ourselves have vanished, and 
with them all the imagined good I thought of doing with it. 
Still, a comfortable competence is far from hopeless. I do not 
know what further you may have in your power, should it 
become requisite. On mature reflection, I am convinced that our 
safety requires that I should go south if we continue operating ; 
and in that event, I know the presence of my brother, as treas- 
5 



66 APPENDIX F, " HIS DUTY TO ENQVIEE." 

TRER OF THE COLLEGE, during the iL'hoIe time, to see to things cmd 
aid with all the energy he possesses, is positively necessary, for 
a variety of reasons. Mr. Mclntyre and I must now necessarily 
both be often and long absent, and often unexpectedly, and we 
will need liis active aid, besides the heneficial public effect it would 
have, that he is known to be here as the treasurer of the college.''' 

'' After reflecting upon the contents of t]ie above letters, and 

for the express purpose of more eifectually guarding tlie rights, 

and furthering the interests of Union College, the President 

employed Mr. H. Yates, at tlie time treasurer and clerk of the 

boai\i, and soon thereafter a trustee, to go to Xew-York as 

agent of the college, and to remain there as much of the time 

as practicable, until the close of the Literature Lottery, and agreed 

to continue to pay him during his absence (besides his salary as 

treasurer and clerk, which he retained) the sum of $1,309 

per annum, and also to pay his travehng expenses, &:c., wliile 

absent.*' 

{Chancery Docs. § 91, 92.) 

Why Yates & Mclntyre were so desirous to have Henry Yates 
sent to Xew-York to look after the interests of Union College, 
AS ITS TREASURER, and liow cxcluslvely he devoted himself to the 
promotion of those interests, and to what extent he ultimately 
contributed to the promotion of the same, will appear from the 
following correspondence : — 

On the loth of May, 1830. A. Mclntyre writes to the President 

as f3llows : 

^ I am sensible that om- contracts have had to be varied and 
modified from time to time, and that the changes have given you 
trouble and vexation, but a change of times and circumstances 
rendered them necessary. They were unavoidable, and had you 
pursued a less liberal and Just policy, you would have disheartened 
and ruined us. and inflicted a serious injury on the collese. And I 
consider the change now asked Ibr of a similar character with 
those formerly asked for and granted. I hope and trust, however^ 
that this may be the last that we shall ever be compelled to sue for. 
I certainly sliall never ask for another, unless dire necessit"* com- 



APPENDIX F. "his DUTY TO ENQUIRE." 67 

pels me. I dare not say the necessity may not come. I mean, 
however, to say^ emphatically^ that necessity alone shall ever compel 
me to ask any other change or concession. 

" Allow me to hope, then, that you will make this one further 
change. I entreat that you do." 

{^Chancery Docs., § 362.) 

On the 15th of July, 1830, a new stipulation was entered into in 
the words following, containing the concession so urgently desired: 

(Chancery Docs., ^ 378.) 
" Whereas, the claims of Union College against the subscribers, 
Yates Sf Mclntyre, arising out of their contracts under the law to 
limit the continuance of lotteries, passed tlie 5th April, 1822, have 
been fully paid or provided for by notes given August 1st, 1828 
when said contract was cancelled ; and whereas, the stipulation 
of the subscribers, entered into with Eliphalet JYott, on the 30^/i 
May, 1826, under the "act to enable the mayor, aldermen, and 
commonalty of the city of Albany to dispose of tickets in a lotte- 
ry heretofore granted, and to limit the continuance of the same," 
passed April ISth, 1S26, was for and in consideration of personal 
services rendered, or to be rendered, and hazards run on our account; 
and whereas, the hazards are diminishing, while the difficulties 
of conducting the lotteries are increasing ; therefore, in lieu of 
said stipulation, entered into on the 30^/i May, 1826, and of all the 
personal demands arising as aforesaid, out of services rendered and 
hazards run by said JYott for us^ in regard to so much of the Con- 
solidated Lottery as shall have been, or to be drawn from and 
after the first day of May last, the subscribers promise to pay to 
said Eliphalet Nott, within ninety days from the drawing of each 
class, drawn as aforesaid, after the first of May last, five per 
centum on the gross amount of tickets sold therein,* after deducting 
therefrom the contained amount of land, if any, in any of the 
schemes : it being always understood that the said Eliphalet 
Nott is to take an equal share with us of the Albany lands that 
may fall into our hands by purchase or by drawing them on hand 
at the price they may cost us, and allowing us interest on the 

* In place of 6 31-100 per cent, which they were previously bound to pay, 



C8 APPENDIX F. " HIS DUTY TO INQUIRE." 

cost from the time of payment ; and also tliat we are to continue 
to be authorized to sell any such Albany lands, when we can do 
so, we to be accountable to tliem therefor. 

" YATES & McINTYRE." 
JYew-York, July 15, 1830. 

{Chanc. doc, ^ 375.) 

On the 27th of April, 1S32, Mr. Henry Yates, still treasurer of 
Union College, and under pay for attending to its interests, writes 
to the President as follows : 

(^Chancery doc. § 482.) 

9 

" My Dear Sir — We have this morning had a short conversa- 
tion on the subject of our finances and future operations. It will 
be necessary for you to make up your mind not to draw any mvre 
money from here (except tlie sum to be paid to-day.) Probably 
some of the partners will write to you more particularly, as to 
the course we mean to pursue. 

" Very truly your friend, 

H. YATES." 

On the 28th of April, 1832, Henry Yates, Treasurer of Union 
College, in connection with two other persons, till then unknown 
as connected with the lottery, writes to the President as follows : 

{Chancery docs. §§ 485 to 491.) 

" Rev. and Dear Sir — We are obliged, by circumstances, to ad 
dress you on a subject that our partners have examined with you, 
but in which you and they have had erroneous impressions. We 
allude here to the profits on the lotteries. Your calculations in 
relation to these profits, however true in theory, have proved 
fallacious when tested by actual experiment. It doubtless was one 
of the great causes of our partners getting so much in arrears, 
m the first three years of their operations under the present sys- 
tem of lotteries.* 

* The partners themselves attributed their emharriassments to a very different cause to wit : 
to their unwarrantable speculations. 



APPENDIX F. "his DUTY TO INQUIRE. 69 

" In Philadelphia the same mistake was made, but the mode 
was subsequently changed, and instead of a per centage, an an- 
nual stipend was paid, so as to recover from the losses sustained 
there, which, with the more advantageous contracts which we 
have taken in other States, has enabled us to bear up against dif- 
ficulties here. 

" In consequence of your individual exertions, your enlighten- 
ed views of the whole affair, and continued efforts to aid the 
house, we, or some of us, at least, have heretofore consented to 
pay far more than ever could have been contemplated, amount- 
ing at least under different heads, to (No amount was men- 
tioned.) 

" Having done this, we must ask you not only to continue 
your friendly aid, but to relinquish any further claim on us. 
What is done we shall endeavor not to recall, if circumstances 
are such as to avoid it. The last allowance, though large, can 
only be considered as a gratuity, and never would be tolerated if 
known. 

" The step which we now take is not intended for our own be- 
nefit, but to provide for the losses which were sustained before 
we entered into the concern. So much was lost, and such amounts 
paid to the institution for which you acted, that the then managers 
owed much more than they had assets to pay. This being charged 
to them, will reduce their share of any profits that have been sub- 
sequently made, and would possibly reduce what they have yet to 
a mere pittance, if anything. 

" We consider the full value of a lottery no more than five per 
cent, on the sales.* That sum we propose to allow them in 
New-York. We deem that we have purchased both but having 
made the institutions an extra allowance, we have determined to 
allow John B. Yates and Archibald Mclntyre,t the same for the 

* The real value is 15 per cent, that being the per centage deducted according to law. 
f The very individuals, and the only individuals who were parties to the contracts with the 
College and its President. 



70 APPENDIX F. " HIS DUTY TO ENQUIRE.' 

time yet to come, particularlj as we are satisfied it will be wanted 

to make them whole. 

Dated at JYew-York, Mpril 18, 1832. 

" We are, reverend sir, 

" With the greatest respect, 

" Yonr obedient servants, 

" H. YATES, 

'' JOHN ELY, Jr. 

" JAMES McINTYRE, 

" by JOHN ELY, Jr.*' 
" Rev. Dr. Eliphalet Nott." 
• • 
" Whatever the circumstance may have been which led to the 

foregoing refusal, it would seem, from the abstract (Chancery docs. 
§248,) that neither a diminution of sales nor inadequacy of com- 
pensation, could be among them. 

" Though the falling off of the lottery business, so much com- 
plained of in the foregoing correspondence, were not contradicted 
by the actual returns from time to time obtained, still it would 
be apparent, from the general tenor thereof, that said correspon- 
dence was conducted, on the part of the contractors, during the 
latter periods, with a view to effect, rather than to a full and 
fair exposure of their profits and losses. For though said cor- 
respondence abounds with references to frequent unfortunate draw- 
ings, it omits to mention the no less frequent fortunate drawings, 
w^hich must,^s admitted by Yates & Mclntyre, (Chancery docs. ^236 
also § 328,) have occurred ; and of which so much was heard fi'om 
another quarter. 

" Indeed after the original liope of acquiring fortunes began 
to revive in the minds of the contractors, it was deemed needful, 
on account of public opinion, for them to expose, without reserve, 
their former losses, and conceal as far as practicable, their pro- 
gressive gains. 

" That they were embarrassed, and sometimes greatly, until 
near the time of their refusal to fulfill tlieir engagements, is not 

* Mr. James Mclntyre is incai)able of signing his name at present, having severely sprain- 
ed his wrist by a fall from a horse. He therefore requested his friend, J. Ely, jr., to 
sign for him. 



APPENDIX F. "his DUTY TO ENQUIRE." 71 

doubted. How should it be otherwise ? Neither of them were 
in independent circumstances when the original contract was 
entered into. On the contrary both were known to be embar- 
rassed. And yet after making that contract, besides stock to a 
very large amount in the Welland canal, the Union canal, the 
Morris canal, the Arcade, Philadelphia, and Utica Insurance 
Company, and sundry other incorporated companies, they pur- 
chased real estate in the city of Washington, in the State of Penn- 
sylvania, to a large amount in the State of New-Jersey, and in the 
city of Albany to a large amount, and in the city of New- York to 
a still larger amount, where large sums were also expended in 
building. 

" All these purchases required to be paid for out of the avails 
of the lotteries ; and being paid for, (as they have been to a con- 
siderable extent, with a portion of the profits belonging to the 
college,) they have left the contractors, exclusive of other gains 
in the possession of a great estate. 

{Chanc. doc, §§ 492 to 496.) 

Dr. Nott to Yates & Mclntyre. 

" Way, 10^^ May, 1832. 
" Gentlemen — A communication expressive, as it seems to me, 
of a determination on the part of third persons to interfere with 
our reciprocal rights and duties, has been received. Nothing 
but an apprehension, either that I have misunderstood the im- 
port and design of this communication, or that the persons making 
it were at the time laboring under some strange delusion, either 
having forgotten, or not having previously known, that every ma- 
terial fact stated is disproved, and every opinion expressed refuted, 
oy indisputable evidence in my own possession, could render any 
answer on my part consistent with self respect. 

" It is my design to send to you a copy of this (to me) unac- 
countable communication, together with tlie reply thereto, should 
any reply, on reflection, he deemed requisite, as soon as I am able. 

" At present I am travelling for my healtli : I shall, however, 
I hope, be home in a week or ten days, by wlucli time, I trust. 



72 APPENDIX F, '^ HIS DUTY TO E^'QUIIlE." 

the regular returns will be made out and forwarded, that there 

may be no further delay in the payments stipulated to be made, 

as the same become due ; for which I shall draw as usual, unless 

you prefer to deposit the amount to my credit in the Manhattan 

bank, and give me notice thereof, which you are hereby authorized 

to do. , 

" Very respectfully, 

"E. NOTT." 

" Messrs. Yates & McIntyre." 

{Chancery Doc, §497.) 

Yates & Mclntyre to Dr. Nott. 

New- York, JV% 15^A, 1832. 
" Rev. Sir — Your letter of the tenth was received last evening. 
The communication to wliich you allude, is tliat of a portion of 
the house of Yates & Mclntyre, not of third persons,* and al- 
though not the direct act of the whole house, yet the purport of 
it was communicated to all, and all acceded to its being made to 
you. 

" The simple truth of the matter is this : Ml the members of the 
house have uniformly been very willing to sanction and give full ef- 
fect to your views of the arrangement between us {except Mr. J. B. 
Yates) however contrary such acquiescence might be to what they 
considered their legal rights. They did so with the sincerest plea- 
sure, and would probably have continued to do so until the con- 
clusion of their lottery labors, were it not that on a more correct 
and narrow view of our concerns, connected wdth the certain 
AND EARLY cLosEf of OUT busiucss, they can plainly see that they 

* So it is now admitted, and by a bill in Chancery afterwards proved, that the treasurer of 
Union College, Henry Yates, Esq., on going to New- York, July 1st, 1826, as the paid agent 
of the College and its President, to protect their rights, immediately entered into partnership 
with Yates & Mclntyre ; and that he has ever since continued to act in the double capacity of 
treasurer of the College and partner in said firm ; and now, with two other persons, like him- 
self unknown to Union College as partners, comes forward, a self-constituted umpire, and de- 
cides that the per centage promised to be paid by Archibald Mclntyre, and his brother J. B. 
Yates, to Eliphalet Nott, for moneys advanced, hazards run, and services rendered by him in 
their behalf, shall now be taken from the said Eliphalet Nott and given to the said Archibald 
Mclntyre and J. B. Yates, who originally promised to pay the same to said Nott. 

\ Mr. J. B. Yates having just concluded an agreement to close the lottery with the year 1833* 



/ 



APPENDIX F. ^' HIS DUTY TO ENQUIRE." 73 

will end with a scanty remuneration; and this they think would 
particularly be the case with the two first who engaged in the 
business. 

" Those two (J. B. Yates and A. Mclntyre) suffered appalling 
and ruinous losses, in acquiring that knowledge and experience* in 
the business which was so necessary to its successful prosecution 
afterwards. They may be said to have lost all, if not more than 
all, they liad made. 

"The other partners (Henry Yates, John Ely, Jr., and James 
Mclntyre), lately began to perceive this state of things, and it 
gave them pain and distress to think that tlie two first partners, 
who had been subjected to the severest losses, responsibilities, 
labors and anxieties, should after all be left with very little for 
their remuneration. What was to be done was the question with 
those three gentlemen who sent you the communication of which 
you complain. 

" They were fully satisfied of tlie legality, as well as equity ,f 
under the circumstances of withholding what had been cheerfully 
given gratuitously to a meritorious and public spirited man, for 
a valuable public object, so long as they entertained the opinion 
that necessity did not require another course. Now, however, 

* The present Yates & Mclntyre, including Henry Yates, Jr., John Ely, Jr., and James 
Mclntyre, attributed the losses of A. Mclntyre and J. B. Yates, the original Yates & Mc- 
lntyre, to a very different cause from that to which they themselves attributed it at the time 
of those losses, and when the cause was fresh in their memory. 

In Sept. 29, 1828, they say in a letter addressed to the President — 

" We are now drawing to a close with our arrangements in consequence of our foolish and 
temerarious speculations." (Chancery docs. § 151.) 

And even Mr. Henry Yates assigns, again and again, the pressure of the Welland canal 
drafts as the cause of their embarrassments, never their want of experience in the lottery bu- 
siness, a business, in which Mr. J. B. Yates had been engaged years before this contract with 
Union College was entered into. {Chancery docs. § 138.) 

f The opinion of the present Yates & Mclntyre, seems to have undergone a material change 
in relation to the claims of honor and equity, since they applied during the continuance of their 
enibarrassment, to the President, for one more concession, granted in the very stipulation, the 
payment promised in which, they now repudiate. 

Then they spoke doubtfully of their own legal rights, but admitted the equitable rights of 
the President to be unquestionable. In relation to this, Mr. Archibald Mclntyre, in a letter 
addressed to him, May 15th, 1830, says: 

" You are aware, I believe, that although we may have a legal right in the lotteries drawn 
or to be drawn, subsequent to our first contract with you, that your right to a participation in 



74 APPENDIX F. "his DUTY TO ENQUIRE 



having satisfied tliemselvs that the situation of the two first part- 
ners imperiously demanded what is now claimed for them, thejj 
deemed it their duty to communicate to you their intentions in 
the manner they did, at the same time informing tlie other two, 
(J. B. Y. and A. McI.) that they claimed no part of what yet 
might be saved in the way proposed, but generously offered to 
apply it to making up, in part, the losses sustained in the early 
part of the business.* 

" With these views of this subject, we hope you will see abun- 
dant reason for concurring in the course determined in. The 
measure was not hastily, nor without reflection, adopted. 

'^ We trust tliat you will believe us, when we assure you that it 
gives us great pain to think that any difference of opinion should 
take place with you, a man whom we so much revere and respect, 
and that it is now our most anxious wish, that on a full review 
of tlie matter, you will be able to see it in a very different light 
from that in wliicli, by your letter, you seem to have done. 
" We are, with sincere respect. Rev. Sir, 

" Your most obedient servants, 

YATES & McINTYRJE." 

" Rev. E. NoTT, D. D." {Chan. Docs. § 500 to 507.) i 

X 

So much as to the consistency of enquiring after payments made 
the President for personal services, all of which had been reported 
to tlie Trustees, and forbearing to enquire after payments made the 
Treasurer, none of which had been so reported, as stated page 19. 



their ayails, is at least questionable. But hoTverer this maybe, I declare most unequivocally 
that I have not the remotest idea (nor do I know that any one else has) of setting up such a 
construction, or of getting rid, in any icay, of all that is in honor and eqvAty yours. ' We 
ha,ve gone on, hand in hand, and obtained extraordinary rights by dint of talent, management, 
prudence and perseverance ; and the exertion of your talents and management, were undoubt- 
edly most efficient in the obtainment of these rights. Hence every principle of honor and 
justice requires that you should fully partake in the benefits; I certainly xcish you should. 
Indeed, I could not, if permitted to do it, think of asking more than to participate equally 
idth youin the benejits thiis obtained. {Chanc. doc. § 365.) 



/ 



\ 



* The generosity of taking this live per cent, from the President, to whom it was promise 
to be paid, and gi\'ing it to A- Mclntyre and J. B. Yates, who promised to pay it since it cost 
the donors nothing, was about equal to its justice. 



APPENDIX G. 75 



"Documents shewing the entire falsehood of the statement that " all pay- 
ments from Ya.es <^ Mclntyre were called for as due to Union 
College,'' as stated page 19. 

First. "What say Yates & Mclntyre themselves ? 

\ " New-York, May 30, 1826. 

Rev. uir^ — In order to bring all the lotteries of the State of 
New- York to a close, within the time for closing the Literature 
and Fever Hospital Lotteries, the Legislature have passed an act 
holding out strong inducements to the subscribers to accept of the 
conditions of the same, entitled " An act to enable the mayor, 
aldermen and commonalty of the city of Albany, to dispose of 
ticlcets in a lottery, heretofore granted, and to limit the continuance 
of the same," passed 13th April, 1826, under which act the sub- 
scribers liave made a contract in the execution of which they hope 
to be able to indemnify themselves for the heavy losses they have 
heretofore sustained ; which contract^ however ^ they cannot execute 
without your consent and co-operation.^ as it will require a further 
continuance of the heavy personal responsibilities assumed by you on 
our behalf. And on condition that such consent and co-operation 
is granted by you, we hereby stipulate and engage that, (after 
having drawn for the college |2,004,099 worth of tickets, reckoned 
at their scheme price, of actual sales, and $1,654,497 worth of ac- 
tual sales, for our own benefit, as assignees of the Fever Hospital 
Lottery,) we will, within ninety days after the drawing of each 
subsequent class, after the drawing of said two sums, deposit to your 
credit., in such bank as you shall designate, six and thirty-one 
one-hundredths percentum on the gross amount of all tickets 
actually sold therein, together with the interest accruing thereon 
from the day of drawing." 

(Signed.) YATES & McINTYRE." 

(Chancery Docs. § 259.) 



76 APPENDIX G. "entire FALSEHOOD." 

"Union College, June lO^A, 1826. 

" Gentlemen^ — To the written propositions submitted in your 

letter, dated May 30th, in regard to tlie contract you have made 

under an act entitled " An act to enable the mayor, aldermen and 

commonalty of the city of Albany, to dispose of tickets in a lottery 

heretofore granted," and to limit the continuance of lotteries, 

passed April 13th, 1826, 1 hereby communicate my acceptance ; 

and you will consider this as the evidence of my consent, and the 

pledge of my co-operation granted on the terms contained in the 

proposition submitted. 

" Very respectfully, yours, &c., 

E. NOTT." 

" Messrs. Yates & McIntyre." {^Chancery Docs. § 116.) 

"And this I do the more cheerfully, as the trustees of the 
College are not made parties to the contract under the aforesaid act 
of April 13th, 1826, and will not therefore, be considered responsi- 
ble for the hazard which may arise from proceedings had under it. 
" Very respectfully, yours, &c., 

E. NOTT, as President 
" To Yates & McIntyre." {Chancery Docs, § 117.) 

Yates & McIntyre to E. Nott.. 

" Whereas, the claiin of Union College against the subscribers, 
Yates & McIntyre, arising out of their contracts under the law to 
limit tlie continuance of lotteries, passed the 5tli of April, 1822, 
have been fully paid^ or provided for hy notes given Au.gust 1, 1828, 
when said contract was cancelled; and whereas, ^/le stipulation of 
the subscribers entered into with Eliphalet JVott^ on the 30th May, 
1826, under the "Act to enable the mayor, aldermen and com- 
monalty of the city of Albany to dispose of tickets in a lottery 
heretofore granted, and to limit the continuance of the same," 
passed April ] 3th ylS2Qj was for and in consideration of personal 
seririces rendered^ or to be rendered., and hazards run on our account; 
and whereas, the hazards are diminishing, while the difficulties 
of conducting tlie lotteries are increasing : therefore, in lieu of said 
stipulation, entered into on the 30th May, 1826, and of all the 
personal demands arising as aforesaid, out of services rendered 
and hazards run by said Nott for us, in regard to so much of the 



/ 



APPENDIX G. '^ ENTIRE FALSEHOOD." 77 

consolidated lottery as shall have been or be drawn from and after 
tlie first day of May last, the subscribers promise to pay to said 
^liphalet Nott, within ninety days after the drawing of each class, 
drawn as aforesaid, after the first of May last, five per centum on 
the gross amount of tickets sold therein. 

" YATES & McINTYRE." 
JYew-York, July 15, 1830. {Chancery Docs. § 378.) 

Though the overture for obtaining assistance was made by 
Yates & Mclntyre during the drawing of the Literature Lottery, 
which was the only lottery in which Union College had any 
interest, neither of these stipulations were entered into till this 
lottery was fully drawn^ and a final settlement made with the College 
in relation thereto. Under the latter stipulation, Yates & Mclntyre 
continued to account until the 25th January, 1832, when they 
refused to do so any longer ; in consequence of which the Pres- 
ident filed his bill of complaint, in which, without the consent 
or even knowledge of the Trustees, he joined the College as 
plain tifl'. 

To tliis bill Yates & Mclntyre filed a demurrer, assigning as a 
cause, " That it does not appear that the Trustees of Union 
College have any interest in or title to the relief sought hy the said 
Bill, or any equity which entitles them to any discovery from these 
defendants.'^'' In this demurrer they say : — " The consideration 
of the written contract of the 10th of June, 1826, formed by the 
overture of Yates k Mclntyre, and the letters of E. Nott, if any 
there was, flowed exclusively from E. Nott, in his individual 
capacity. The letter containing the pledge of his co-operation, is 
expressly alleged in the bill to have been written by him in his 
individual capacity. The corporation was to do notliing, and to 
risk nothing ; and consequently was to receive nothing, more 
than the moneys previously engaged to be paid to it. The per 
centage of 6yW was not to commence until after the full amount 
of those moneys, and of the Fever Hospital grant should be paid, 
and from its commencement, it was to be deposited, not to the 
credit of the Treasurer, like the 8| per cent, nor to the President 
of Union College^ like the 2 J per cent, but to the credit of " your 
orator, Eliphalet Nott," in such bank as he should designate. So 



78 APPENDIX G. " ENTIRE FALSEHOOD." 

far, therefore, as the written agreement of the 10th of June, 1826, 
secures the payment of the per centage now claim-ed, (and it is 
only in this respect that it is at all material in the present suit,) 
it was evidently intended, and is so represented in the bill, for the 
personal benefit of E. Nott as an individual.'''^ (^See Yates Sf Mclntyre^s 
demurrer^ page 27.) 

" The acts done by E. Nott, and by him and Yates & Mclntyre, 
in reference to the moneys now in controversy, and more especially 
the subsequent modifications of the contract of June 10th, 1826, 
are all of the same character. They proceed on the assumption, 
that the present and absolute title to all the moneys agreed to be 
paid by Yates & Mclntyre, as a per centage on the contingent 
remainder of the Consolidated Lottery, was vested, by the contract, 
in E. Nott, in his individual capacity^ and that the Trustees 
of the College had no interest in, or control over, such per cent- 
age." (^Demurrer^ page 29<.) 

" The per centage of $6y3_i-, is treated as one in which the 
College had no interest, and over which it had no control. It is 
to be paid partly in money deposited to the individual credit of E. 

Nott." [Demurrer J page SO.) 

With respect to '' ' E. JYott's agreement with Mclntyre to accept 
for the future five per cent, and the paper subsequently sent by him 
in the execution thereof the same remark as before is applicable ; to 
which it may be added, that the agreement and letter both proceed 
on the assumption, that the affair to which they relate was purely 
a private one between Yates & Mclntyre and E. Nott." [Demur- 
rer^ page 31.) 

To all which may be added the words of Mr. Mclntyre himself, 
which are as follows : 

" I have not the remotest idea, (nor do I know that any one 
else has,) of setting up such a construction, or of getting rid, in 
any way, of all that is in honor and equity yours. We have 
gone on, hand in hand, and obtained extraordinary rights by 
dint of talent, management, prudence and perseverance ; and the 
exertion of your talents and management, were undoubtedly 



APPENDIX G. "entire FALSEHOOD." 79 

most efficient in t!ie obtainment of these rights. Hence, every 
principle of lionor and justice requires that you should fully par- 
take in tlie benefits ; I certainly wish you should. Indeed I could 
not, if permitted to do it, tliink of asking more tlian to partici- 
pate equally with you in the benefits thus obtained. {^Chancery 
Docs. § 365.) 

Thus far Yates & Mclntyre. Much more might be added if more 
\\^ere necessary. 

Secondly. — What say the Trustees of Union College as to their 
claiming all payments from Yates & Mclntyre ? They say : — 

(Extracts from Correspondence with Hamilton College.) 

To B. W. D WIGHT, Esq., Treasurer of Hamilton Colles:e : 

Dear Sir., — In reply to your communication we beg leave to 
make a brief statement of facts. 

The amount due to the several institutions from the Literature 
Lottery was $322,256.81. The President of Union College bor- 
rowed funds, and bought out all the other parties in interest. 
By the original indenture of Yates & Mclntyre, to wiiom its entire 
interest w^as sold, said College was, (if paid in advance, and thus 
protected against loss, as the other institutions had been,) to receive 
$276,090.14, estimated with interest by Yates & Mclntyre in a bill 
subsequently filed against the trustees at $393,120. In the execu- 
tion of this indenture, however, they met with losses, and became 
reduced to the verge of ruin. 

To prevent their failure, the president of Union College raised 
funds for them to a large amount, in consideration of which, 
Jan. 24th, 1826, they stipulated to vary the terms of their original 
indenture, so as to require the payment of eleven per cent on 
$4,492,208 worth of tickets, a supposed contingent residue of 
$456,489 worth, to remain subject to a new contract. Soon after 
this an act was passed authorising the mixing of the Albany land 
lottery with the Literature and Fever Hospital lotteries. To enable 
Yates & Mclntyre to execute a contract under said act, they ap- 
plied to Dr. Nott for his consent and co-operation, stipulating 



80 APPENDIX G. "entire FALSEHOOD." 

May 31st, 1826, in consideration thereof to pay to liim a certain 
per centage on all the subsequent classes drawn. 

After the whole of the $4,948,597 worth of tickets assumed to 
belong to the Literature lottery, including the supposed contingent 
residue, had been drawn, and the drawing of the Fever Hospital 
lottery commenced, a settlement was effected with Yates & Mclntyre, 
to wit : on the first of August 1828, under their original indenture, 
as modified by their stipulation of Jan. 24, and May 31, 1826, in 
w^hich Yates & Mclntyre agreed not only to pay the per centage 
due to the College under their original indenture on the whole 
amount of tickets tlien supposed to have belonged to the Literature 
lottery, but also to pay the additional amount stipulated to be paid 
Jan. 24, 1826, lor monies advanced by the President to .enable them 
to meet the payment of certain prizes. 

Yates & Mclntyre, after commencing the drawing of the Fever 
Hospital lottery still continuing embarrassed, applied repeatedly 
to Dr. Nott for pecuniary assistance to very large amounts, for 
which they stipulated to pay a certain per centage on the tickets 
thereafter to be drawn, which per centage, after being paid .ibr 
some time, was ultimately refused. For tlie recovery of which 
Dr. Nott filed a bill in Chancery, in which the Trustees of Union 
College, without their consent, or even knowledge, were joined as 
plaintiffs. 

To the bill filed by Dr. Nott, Yates & Mclntyre demurred on the 
ground that the stipulation was entered into with him after the 
Literature lottery was closed^ and that the same was for 'personal 
advances^ services and hazards only^ in which the College had no inter- 
est-^ which wasy indeed^ the case. 

And the lottery question having been referred to tlie Attorney 
General, (see Assembly Doc, vol. 4, p. 10,) by the Legislature, he 
reported that the whole amount of tickets contained in the Lit- 
erature lottery, in place of being |4,948,597 worth, as had been 
supposed, was only $3,693,800 worth, making a difference of 
$1,254,797 worth of tickets in the lottery, and of $138,027 in the 
amount of percentage to have been paid by Yates k Mclntyre. 
Whereupon Yates & Mclntyre filed a bill in Chancery for the 



APPENDIX G. "entire FALSEIiOOD." 81 

recovery of this excess of percentage , claimed to have been paid 
in error. 

After considering the report of the Attorney General, and per- 
ceiving if said lotteries contained only $3,693,800 worth of tickets, 
that there was no contingent residue when the stipulation of the 
24th Jan., 1846, was entered into, and of course that the stipulation 
of May 31, predicated on such residue, must be invalid ; a nego- 
tiation was, by advice of counsel, opened with a view to effect an 
amicable settlement, and thus prevent a protracted and expensive 
litigation, when it was found that Yates & Mclntyre would, on their 
part, agree to cancel their entire claim against Union College for 
all payments made in error, provided the College would surrender 
to them certain evidences of debt amounting to $126,037.57, and 
further, that they would agree to pay $150,000 in ten years, in 
instalments, provided the claim against them for the payment 
of percentage under their stipulation entered into July 15th, 1830, 
with Dr. Nott, for personal advances, hazards, &c., was cancelled, 
and it was also found that Dr. Nott would, on his part, also agree 
to cancel said stipulation on said terms. 

Whereupon an article of agreement was entered into between 
the trustees of Union College and the President, setting forth that the 
$150,000 to be received from Yates & Mclntyre, was to be received 
on account of the stipulation aforesaid entered into with him for 
personal advances, &c., and for the recovery of which, said suit 
had been commenced, and that the same was to be accounted for to 
him on a final settlement. 

After which a tripartite agreement, on the conditions above set 
forth, was entered into between Yates & Mclntyre, the Trustees 
of Union College, and the President of Union College, in which the 
parties severally agreed, not only to discontinue the suits which 
had been commenced, but also to relinquish all cause of future 
suits, arising out of said lottery transactions. 

The President of Union College, having by great personal exertions 
and at great personal peril j (in which no other Trustee was found willing 
to participate, and which all considered in himrash and even presumptu- 
ous,) succeeded in purchasing out the interest of the other Institutions, 
amounting to $95,780.62, and in sustaining the credit of Yates & 



82 APPENDIX G. 

McTntyre till the entire Literature lottery was drawn, and ii««^ing 
also succeeded in securing from said lottery, after paying all ex- 
penses, a considerable surplus to be divided between the colleges^ 
it was felt that Union College, whose interest had been so gratui- 
tously and greatly promoted by hazards assumed by him in its own 
behalf, would therefore come forward with an ill grace to claim to 
share in the avails, if any there should be, of hazards subsequently 
assumed by him in behalf of others. And however frequently the 
Trustees of Union College may have expressed their sense of the 
indebtedness of said college to its President for his interference as 
aforesaid, still they deem it proper distinctly to state, that they have 
neither received, nor claim to be entitled to receive, the compensation 
stipulated to be paid to the President of said college in the form 
of per centage for monies advanced or hazards run by him in 
behalf of Yates & Mclntyre, after the Literature lottery closed. 
In behalf of the jB.nance committee, 

Very respectfully, yours, &c., 

J. P. CUSHMAN, 

A. C. PAIGE. 
Schenectady, Feb. 23, 1840. 

To B. W. DwiGHT, Esq., Treasurer Hamilton College. 

So much for " all payments being called for as due to Union Col- 
/ege," as asserted, page 19 and 99. 



APPENDIX H. 



83 



(H.) 

STATE OF NEW-YORK, ) 

No. 71, \ 

In Senate, Jipril 12, 1851. ) 

REPORT 

Of the Committee on Literature on the Condition of Union College. 

The committee on Literature, to which was referred the reply 
of the Comptroller, dated February 7th, 1851, to a resolution 
adopted by the Senate, in relation to the condition of the funds 
bestowed by the State upon Union College, 

REPORT: 

That the Assembly of 1819 appointed a select committee under a 
resolution passed April 11th, 1849, in the words following, namely: 

Resolved, That the committee on colleges, academies, and com- 
mon schools be directed, during the recess, to examine into the 
financial condition of Union College, and into the situation of the 
various funds bestowed on said institution by the State, and the vari- 
ous transfers of the funds and property of said college, that said 
committee have power to send for persons and papers, and report 
to the next Legislature. 

That a majority of said committee, consisting of four members, 
reported on the 19th day of March, 1850, (Assembly Doc. No. 146,) 
" that the financial condition of Union College was unsound and 
improper," and that the remaining member, the chairman of the 
committee, dissenting from the majority, presented his adverse* 
report, dated March 23d, 1850, (Assembly Doc. 147.) 

That on the 8th day of April, 1850, Union College, by Alexan- 
der Holland, its treasurer, submitted a report of six printed lines 
to the Legislature, in the words following, viz : (Assembly Doc- 
ument No. 190.) 

" That no change had been made in the securities in which the 
avails of the grant under the act of March 30th, 1805, (required 



84 APPENDIX H. SENATOR BEEKMAN's REPORT. 

by the act to be annually reported to the Legislature,) have been 
invested, since the date of his report, submitted April 5th, 1849, in 
which report a schedule containing said securities is furnished." 
All of which is respectfully submitted. 

(Signed,) ALEX. HOLLAND, 

Treasurer of Union College. 
Schenectady, April 1, 1850. 

To this report was appended a document entitled "reply of 
treasurer to majority report," extending throughout fourteen printed 
pages, and signed by him, which, accompanied by extracts from 
correspondence with Hamilton College, and from the reports of the 
majority and minority of the select committee above named, occu- 
pies seventy-two printed pages. 

The committee on literature find that a very brief and imper- 
fect INSPECTION WAS MADE BY THE SELECT COMMITTEE OF 1849. The 

examination as set forth in appendix E, to the report of the major- 
ity, (Assembly Document No. 146,) although merely claiming to be 
memoranda made by A. Johnson, secretary to the committee, 
appears to throw considerable light upon the financial management 
of the College. 

Although the treasurer complains that several " misstatements 
of facts, erroneous deductions, unfounded imputations and insinu- 
ations," have been introduced through some oversight, into the 
report of the majority, and regrets that the statements made 
therein, " should, through the errors in their own minutes, have 
been so confused, contradictory, and variant from the facts of the 
case," the memoranda referred to, appear to be a true record of 
testimony so far as they extend.* That a witness should contra- 
'dict himself at diiferent points of tlie same investigation is neither 
unusual nor surprising ; nor is it more remarkable that conclusions 
drawn from such "statements" should be unsatisfactory to the 
parties examined. 

The treasurer affirms (page 4 of Assembly Document 190,) that 
$17,000 more was actually paid for the purchase of the several 
grants made in the lotteries to other institutions, than would 

*HoWido they tidus appear, having never been read or assented to by the Treasurer. 



APPENDIX H. SENATOR BEEKMAN'S REPORT. 



85 



have been paid on the principle of the usual rebate of interest, 
predicated on the time required for completing the lotteries as fixed 
by tlie Comptroller, but in his answer to the 24th question, (page 
55, Assembly Document No. 146,) he stated under oath, that " the 
$12,000 granted to the New- York Historical Society w^as sold for 
$8,000 to Union College, and the other grants were discounted on 
the usual rule of rebate and premium." (Explained p. 12.) 

At page 14 of the minority report, (Assembly Doc. 147 of 1850,) 
it is stated tliat "the bond of Yates & Mclntyre, mentioned in 
schedule 6, had been paid at the time of said examination, and the 
amount except $2,000 had been deposited in New- York, to the 
credit of tlie treasurer and bearing interest.'^ The President stated 
to the committee that he proposed, after giving satisfactory secu- 
rity, to borrow the balance so deposited, for the purpose of improv- 
ing property belonging to him in New-York, known as the Stuy- 
vesant Cove property, (see same page 14.) • 

The treasurer states, (Assembly Doc. No. 146, page 47,) under 
oath, that the bond of Yates & Mclntyre, mentioned in schedule 6, 
wath the mortgage collateral thereto, has been paid, and the moneys 
received therefrom with the exception of about $2,000, which had 
been paid for interest, debts and expenses of the college, is depos- 
ited in New- York, to the credit of the treasurer of the college, 
and is on interest. 

In reply to question 12, (Assembly Doc, No. 146, page 53,) 
which is in the following words, "the $17,500 of the Yates and 
Mclntyre, due with interest, belonging to the permanent fund 
of $50,000 granted by the act of April 13th, 1814, for the assist- 
ance of indigent students having been collected May 5th5 1849, how 
has it been invested ?" 

The treasurer answered — " It is not invested, but will be by bond 
and mortgage." 

To Question 13, (of same Doc.) — " The Novelty works being the 
private property of Dr. Nott, for wiiat reason has that money been 
employed to enable Hezekiah Bradford to make a dock there 1" 

The treasurer answered, "It is not employed at the Novelty 
WORKS BUT on THE LANDS, AT Stuyvesant Cove." (Refutcd page 9.) 



86 APPENDIX n. SENATOR BEEKMAn's REPORT. 

To Question 14, (of same Doc.) — Doctor Nott having stated that 
he is empowered by a resolution of the trustees of Union College to 
direct tlie application of funds as he may think fit, tliat he often 
uses the funds for various purposes, but that he always replaces 
any moneys belonging to the college which he may take, with some 
security ; what security has he given in place of the $17,500 so 
employed by him, at Stuyvesant Cove as aforesaid V 

The treasurer answered — " It is not yet employed, but it is in the 
hands of the treasurer." 

The contradiction between the replies to the last two questions, 
and the statement of the President in the minority report, although 
claimed to be an error, by the reply of the treasurer (at page 7, 
Assembly Doc. No. 190) only shows a discrepancy of statements, 
which the following letters perhaps, may assist in explaining :* 



(Copy.) 

Union College, Schenectady^ Feb. 10, 1849. 
A. McIntyre, Esq., Albany : 

Dear Sir, — During my absence to Albany yesterday, Mr. Charles 
Yates called at my office and left word that he hoped to be able to 
make the first payment within the next ten days, and requested 
that the accompanying statement of the account with the bond 
should be sent to you. For ten days we will endeavor to struggle 
on without tlie money ; but I see no possible way of waiting 
longer ; we are two quarters in arrear to the officers of the college 
for salaries ; w^hich is their only dependence, and for which they 
cannot be asked to wait longer. Besides this we have other una- 
voidable payments to prepare for, within that time. I mention 
these private matters to show more strongly than the mere general 
mention of the want of money, how we are situated, and to show 
that the money must be raised. 

Very respectfully, 
(Signed,) ALEX. HOLLAND. 

• No such answers as are here imputed were ever read or assented to by the Treasurer. 
(See page 27.) 



APPENDIX H. SENATOR BEEKMAn's REPORT. 87 

( Copy. ) 
Union College, Schenectady^ 30/A March, 1849. 
Arch. McTntyre, Esq., Albany : 

Dear Sir, — Owing to recent calls on the College for the payment 
of large sums of money, which calls were submitted to the financial 
committee, I have been directed by them to inform Mr. Charles 
Yates that they would require, within a very few days, the payment 
of the balance of the bond of Yates & Mclntyre and others, 
amounting, with interest, to over $17,500.. 

I have written Mr. Yates to that efiect, and the object of this 
communication to you is to say, that in the event of having to pro- 
ceed to collect tliis amount by a course of law, the committee decline 
resorting to the slow process of foreclosing the collateral mortgage 
of J. B. Yates, and would deem it their duty to look for it to the 
makers of the bond, any one of whom, on payment thereof, could, 
if desired, have said mortgage transferred to tliem. 
Very respectfully, 

ALEX. HOLLAND, Treasurer."" 

It appears to the committee on literature a somewhat strange 
application of so large a portion of the permanent fund of $50,000 
granted by the Legislature for the assistance of indigent students, 
to employ $17,500 for the payment of professors' salaries, then two 
quarters in arrear.f Perliaps, however, this is only a discrepancy 
or error on the part of the treasurer, or one of tlie '^ unfounded 
imputations and insinuations " so feelingly and indignantly spurned 
by him in his reply to the majority report. 

The report of the minority is spoken of in terms of satisfaction 
by the treasurer in page 16 of his reply, (Assembly Doc. No. 190.) 
Now it is claimed at page 21 of the minority report, that by a res- 
olution of the board of trustees, the entire management and control 
of the funds of the College have for many years been placed in the 
hands of the finance committee, of whicli the President of College 
is the chairman ; " and the President mainly is entitled to whatever 
credit or liable to whatever censure may attach to the management 
of the finances of the College." The treasurer in his reply to 
question 7, at page 52, Assembly Doc. 146 of 1850, answers: ''In 

* Mr. Yates having repeatedly neglected to meet his acceptances for monies due, the Fi- 
nance Committee directed the collection of that entire debt. f Refuted page 9. 



88 APPENDIX H, 

reply to that branch of tlie question demanding, ^does not the 
President use the funds of the College as his own, interchangeably 
as occasion arises V He never has done so to my knowledge." 

How thorougldy conversant the treasurer w^as with the financial 
management of tlie College funds is evident from a legal document, 
dated December 20tb, 1836,* and purporting to be made between 
How^ard Nott and Benjamin Nott, of the city of New-York, manufac- 
turers and mercliants, doing business under the firm of H. Nott & Co., 
parties of the first part-; and James Brown of the firm of Brown, 
Brothers & Co., James Hall of the firm of James Hall & Co., and 
John Delafield of New^-York, parties of the second part ; from which 
instrument extracts are herein immediately after given, so far as 
applicable to the points of this investigation. And this instrument, 
among other matters, witnesseth, that whereas the said parties of the 
first part have been engaged for some time past in an extensive 
business, principally consisting of the manufacturing and sale of 
stoves, steam engines, and articles and machinery constructed from 
iron and other metals, and have now on hand a large quantity of 
materials in said line of business, portions whereof are in an im- 
perfect and unfinished state, and require considerable expense, 
3Utlay, and some additions, to be rendered saleable in market, and 
are also possessed of other property to a considerable amount ; 
and whereas, they have become embarrassed in their said business, 
and are unable to carry it on and meet their debts, liabilities, and 
engagements, due and owing, and wdiich are to become due 
and owing, by said firm ; and whereas, some of said liabilities 
have arisen and been incurred under circumstances which require 
from them full and prompt payment and satisfaction; 7ww this 
indenture witnesseth that the said parties of the first part, in 
consideration of the above, and in further consideration of one 
dollar to them in hand paid by the said parties of the second part, 
at or before the ensealing and delivery of these presents, the 
receipt wdiereof is hereby acknowledged, have sold, conveyed, 
assigned, transferred, granted, and set over, and by these presents 
do sell, assign, convey, transfer, grant, and set over, unto the said 
parties of tlie second part, and tlie survivor of them, their heirs, 

* That the Treasurer was quite as conversant as the Hon, Senator will appear from 
page 15. 



APPENDIX H. SENATOR BEEKMAn's REPORT. 89 

executors, and administrators of such survivor, all their joint oi 
partnership estate, as in said indenture further set forth -, to have 
and to hold, take, possess, receive, and enjoy the said estate, prop- 
erty, and effects as therein set forth, in trust, to take possession of, 
recover, receive, and collect such property, and every part thereof, 
and to sell, convey, dispose of, and apply the same, as in the said 
indenture set forth. And, among other trusts, to redeem twenty- 
five thousand dollars in the capital stock of the Mohawk Bank at 
Schenectady, pledged to John Delafleld, or the Phoenix Bank of the 
city of New- York, wdth the note or endorsement of Doctor Eliph- 
alet Nott to secure the note of the parties of the first part for that 
sum. Also to redeem eleven thousand dollars of the capital stock 
of said Mohawk Bank, pledged to the Farmer's Loan and Trust 
Company. Also, to redeem ten thousand nine hundred dollars, or 
thereabouts, of the capital stock of the Farmer's Bank of Troy, 
pledged to Prime, Ward, King & Co., or R. M. Blatchford of New- 
York. The stocks above named were the property of Union Col- 
lege, Schenectady, except $1 ,000 of Mohawk Bank stock, which 
was the property of Alonzo Potter ; and said stocks, together w' ith 
the aforesaid note or guarantee, were received by the parties of the 
first part, and applied to their use and accommodation, and ought 
to be returned to tJie parties to whom they belong. In case the 
said stocks cannot be redeemed, then the parties hereto, of the 
second part, are to furnish or pay to the trustees of Union College 
and Alonzo Potter an equivalent in money or stock. In the fifth 
place, to pay a note of said firm of H. Nott & Co. for twenty thou- 
sand dollars, or thereabouts, now or formerly held by the Delaware 
and Hudson Canal Company, and to secure the payment of which 
note said company received the note of Jonas Holland, Treasurer 
of Union College, endorsed by Eliphalet Nott, upon payment of 
w^hich said debt the said note of Jonas Holland, Treasurer of Union 
College, to be delivered up to him, or his successor in office, it hav- 
ing been used for the accommodation and benefit, and not consti- 
tuting any part, of the property of H. Nott & Co. And wliereas, 
the firm of Howard Nott & Co. made a negociation with the Phcenix 
Bank, or John Delafield, on or about the fifth day of December 
instant, for obtaining from said Delafield or said bank the sum of 
fifteen thousand dollars, and, as security for the payment of that 



90 APPENDIX H. 

amount, deposited with said Delafield notes and acceptances, the 
property of H. Nott & Co., to the amount of $8,000 and upwards ; 
also, the note of Doctor Eliphalet Nott, bearing date the said tilth 
day of December, for $15,000 ; also, a bond and mortgage, executed 
by said Eliphalet Nott, conditioned for the payment of |1 0,000, 
which said note and bond and mortgage of Eliphalet Nott were 
borrowed. In the sixth place, to pay the balance of said $15,000, 
or as much as is chargeable upon said negociation, after the appli- 
cation of the said $8,000 of notes. 

And whereas, Eliphalet Nott, President of Union College, has 
from time to time placed in the hands of H. Nott & Co., certain 
funds, part whereof was the property of Union College ; and 
whereas, from the mode in which the transaction took place, there 
may be difficulty in tracing the specific funds of said College into 
our hands, the same liaving generally passed through the said 
Ehphalet Nott, and for which he is answ^erable to said institution ; 
and wiiereas, we have this day accepted E. Nott's order upon us to 
pay to the trustees of Union College the amount wliich we owe on 
both accounts, to the extent of his and our indebtedness to said 
College, as the same shall be found on the adjustment of the ac- 
counts relative to said funds. 

In trust, seventhly^ to pay the trustees of Union College so much 
of the existing indebtedness of H. Nott & Co., whetlier the said 
indebtedness be to the said Eliphalet Nott, individually, or to Union 
College, as will pay the amount for which the said Howard Nott & 
Co., or Eliphalet, are found indebted to said College, for funds 
received from said College, or ^'on an adjustment of the accounts 
relative to said funds," and after the insertion- of other clauses and 
provisions of trust, " signed and sealed by Howard Nott, and Benja- 
min Nott," and " signed, sealed and delivered in the presence of 
Dudley Selden," and duly acknowledged before F. R. Tillou, com- 
missioner of deeds, on the 22d day of December, 1836. 

To tlie minds of the committee on literature it seems not to be 
an '• erroneous deduction" from the preceding document, that in 
the words of the majority report, (page 52, Assembly Doc. No. 146,) 
" the President of Union College did use the funds of said college 
as his own, interchangeably as occasion did arise."* 

* The untruth of this deduction shown pages 10 and 57. 



APPENDIX H. SENATOR BEEKMAN's REPORT. 91 

Another " discrepancy" invites attention. The treasurer's reply 
(Assembly Doc. of 1850, No. 190, p. 5,) contains the assertion that 
an item of |25,000, and another of $1,500 had been '' erroneously" 
represented in the majority report to have been added by the treas- 
urer as an afterthought to tlie amount stated by him to have been 
received by the college. These sums are recorded in tlie minutes 
of testimony,* and are recollected by Mr. Beekman and Doctor 
Button, members of the committee ; and in this connection it is 
fitting to state tliat Mr. Disosway autliorised the signing of his name 
to the report of the majority, in the following letter : 

Monday, 7 ^. M., March 18, 1850. 

Dear Beekman — The day is too inclement for me to go to the city 

this morning ; I regret it. If I had been welll should have visited 

Albany and met the committee there. It is hardly worth while 

for you to visit me, as you can say to the Doctor and to Mr. Johnson 

that you are authorised to sign for me any report that you three 

can agree upon. Let it be a just and righteous one. "Fiat 

justicia, ruat ccelum." I still hope to visit the capitol before the 

session terminates. 

With kindest regards to yourself and your associates, 

Yours, &c., 
(Copy.) GABRIEL P. DISOSWAY. 

Mr. Disosway had previously interchanged views very fully with 
the select committee, and the report of the majority, when pubhslied, 
so far from exciting any regret on his part at its "discrepancies," 
or " unfounded insinuations " or " oversights," as suggested in the 
reply of the treasurer (page 5, Assembly Doc. No. 190,) has met 
his entire concurrence, as he now personally assures the committee 
on literature. 

It is claimed in the reply of the treasurer that the total sum 
granted by the State to Union College (page 10, Assembly Doc, No. 
190,) is $331,612.13, and this is the sum stated in the minority 
report, (page 3, Assembly Doc. No. 147,) always " irrespective of 
interest.''^ By several statements from the books of account of 
Yates & Mclntyre, tlie managers of tlie lotteries, it appears that 
they paid in cash to Dr. Nott, the following sums : 

* No such minutes of testimony wore ever read to the treasurer or received his assent. 



92 



APPENDIX H. SENATOR BEEKMAN'S REPORT. 



Abstract of 


amounts received yearly by the Trustees of 
and Rev. E. JYott, from Yates Sf Mchityre 


Union College 


From Mar. 


31, 1823, to Mar. 31, 


1824, 


$74,430 40 


1st year. 




1824, 


do 


1825, 


39,286 85 


$113,717 25 




1825, 


do 


1826, 


122,414 27 


236,131 52 




1826, 


do 


1827, 


46,436 60 


282,586 00 




1827, 


do 


1828, 


105,347 78 


387,915 90 




1828, 


do 


1829, 








1829, 


do 


1830, 


70,037 88 


457,955 78 




1830, 


do 


1831, 


143,210 31 


601,166 09 




1831, 


do 


1832, 


116,548 82 


717,714 91 




1832, 


do 


1833, 


43,186 25 


760,901 16 




1833^, 


do 


1834, 


16,340 23 


777,241 39 


Mar. 


31, 1834, to June 15, 


1834, 


4,216 32 




Notes given by Yates & 


Mclntyre, and 






falling di] 


le up to 15th. Dec, 1835,., . 


20,865 57 






J802,323 28* 




Int. at 7 pr 


. ct. to Mar. 


31,1825, 


being 


1 year, .... 


$5,210*13 


do 


do 


1826, 


u 


[ a 




7,960 20 


do 


do 


1827, 


a 


a 




16,529 20 


do 


do 


1828, 


a j 


u 




19,801 02 


do 


do 


1829, 


a ] 


u 




27,154 11 


do 


do 


1830, 


a 


u 




27,154 11 


do 


do 


1831, 


a ] 


a 




32,056 90 


do 


do 


1832, 


a 


u 




42,116 26 


do 


do 


1833, 


6i 


a 




50,240 04 


do 


do 


1834, 


a 


a 




53,263 08 


do 


do 


1835, 


U ] 


u 




54,406 89 


do 


do 


1851, 


'^ 1( 


) " 




870,510 24 


do 


do 


1851, 


" 16 


ys.9m.l6ds. 


4,944 84 


do 


do 


1851. 


" 15 


ys.3m.l6ds. 


22,359 99 






11,233,707 02 



Mr. J. B. Yates states tliat the amount paid to Union College and 
Doctor Nott, was $837,284.13. 

* For the refutation of tliL^, see pages 9 and 39. 



APPENDIX H. SENATOR BEEKMAN's REPORT. 93 

As ill addition to this sum, derived wholly from the profits of the 
lotteries, Union College admits (Assembly Doc. No. 147, p. 2,) 
the -receipt from the State alone, not from lotteries, of seventy-six 
tliousand six hundred and twelve dollars and thirteen cents, 
^irrespective of interest,''^ and from other sources, not lotteries, 
forty-one thousand six hundred thirty-seven dollars and twenty-nine 
cents, (Assembly Doc. No. 174, p. 16,) all irrespective of interest, 

amounting to, |920,572 64 

Union College, however, assumed to pay, and has dis- 
counted at heavy rebates to other institutions, and 
repaid Yates & Mclntyre sundry sums, amounting, 
(Assembly Doc. No. 147, p. 18,) without deducting 
the discount, to 207,229 09 

Leaving a balance, ^irrespective of interestj^ of . . . . $713,343 55 



According to the minority report, (Assembly Doc. No. 147, page 
19,) no interest is computed on sums received or sums paid since 
1820 ; and the report of the minority has certainly made an " erro- 
neous deduction " in assuming that this is sufficiently accurate for 
the purposes of the inquiry with which the committee was charged, 
although there w^ould be great difficulty in stating an interest 
account since that date, which should be consistent with the views 
of financial skill, wliich tlie minority report sets forth, and extols 
with so much complacency. To show how essentially the account 
WOULD CHANGE FRONT,* it wlll be sufficieut to compute simple interest 
at 7 per cent, on the sums paid by Yates & Mclntyre, as herein 
before stated, from the time of payment, to the present year ; and 
there will result a sum of interest amounting to |1 ,233,707.02, 
wQiich, added to the balance above shown to have been received by 
Union College and Doctor Nott, amounts to the large aggregate of one 
million nine hundred and forty-one thousand seventy -nine dollars 
and fifty-two cents. As an offset to this, the trustees exhibit (page 
63, Assembly Doc. of 1850, No. 190) : 

* How this account, wlieii brought to the test of truth, does change front wiU be seen 
page 44. 



94 APPENDIX H. SENATOR BEEKMAn's REPORT. 

College buildings and grounds valued at cost, |296j485 36 

Library and apparatus, 132,817 39 

Furniture, horses, tools, &c., 2,000 00 

34,817 39 

(See page 56 of last mentioned Document.) 

Fund for support of president and professors, 43,573 38 

Fund for support of professors, 35,170 00 

Fund for indigent students, 50,005 92 

At the disposal of trustees, 144,288 56 



Total, 1604,350 56 



Deducting this amount from the sum of §1,941,078.52, which 
includes simple interest upon the funds received from Yates & Mc- 
Intyre alone, there is a difference to be accounted for of |1,336,- 
738 . 96. Were a strict interest account to be stated with the ordin- 
ary accuracy of pecuniary operations, the interest thereon would 

BE yet more formidable.* 

The above computation has been made without taking account 
of the incomes from 300 acres of real estate, or of the receipts 
from tuition fees, room rents, and other charges derived from 
students. 

From this difference, however, must be deducted the moneys 
claimed to have been paid by the college to other institutions and 
to Yates & Mclntyre, amounting to $207,229 .09. These payments 
were not made for the full amounts claimed by the college as cred- 
its, because in the case of the New-York Historical Society, the 
discount was one-third of the whole sum granted f and in the other 
cases, there was a rebate of interest. But there being no dates of 
payment before this committee, an accurate calculation of interest 
becomes impossible. By a liberal estimate, however, assuming that 
the net payments actually made amounted to $200,000, wliich is 
improbable, and averaging the interest to have run twenty years, 
the aggregate would be $480,000, which being deducted from 
$1,336,738.96, leaves still a difference of $856,738.96. 

The current expenses of Union College were, in 1850, $20,850, 
and they do not appear to have materially varied from that amount 

* Hcrw much more formidable will be sbown page 12. f For the answer, see page 12. 



APPENDIX n. SENATOR BEEKMAn's REPORT. 95 

for a long series of years. During twelve years, from 1837 to 1848, 
tlie interest from the permanent fund was annually reported at the 
same amount precisely^ viz : $13,734.20. The tuition fees varied 
from $8,077 to $5,804.43. The average yearly income for the 
twelve years was $20,578.59, as reported ; while the yearly inter- 
est on the monies received from Yates '& Mclntyre alone, would 
have amounted, in 1833 to $54,406.89. The college buildings 
were finished as early as 1819, and then occupied, while the very 
first payment from Yates & Mclntyre was made in 1823. 

It is claimed for the trustees of Union College (page 63, Assem- 
bly Doc. 190, of 1850,) that they exhibit an investment by a sum- 
mary statement there made of $604,340.56, and upon this claim 
that sum has been deducted as aforesaid, as principal money, but 
from this amount it is proper to notice that there should be again 
deducted for debts owing by Union College, (Assembly Doc. No. 

147, page 12,) $29,675 51 

Bonds and notes taken from graduates for advances 

made, to enable them to complete their education,. . . 18,366 86 
Book accounts against graduates for similar advances, 25,082 47 
Mohawk Bank stock, (Assembly Doc. 190 of 1850, pages 

7, 8, 9, 10,) worth only 50 per cent., 16,700 00 



Total deduction to be made, $89,824 84 

which, taken from the sum claimed as invested by the trustees, 
leaves the whole available property, real and personal, in the keep- 
ing of the trustees of Union College, on the most liberal construc- 
tion only $514,515.72. 

It is fair to state that none but an experienced accountant can 
fully unravel the intricacies of the money transactions of Union 
College. Your committee are satisfied that a critically correct bal- 
ance sheet w^ould show more astonishing results than those now 
set forth.* There is little doubt then, that after the most liberal 
allowance for errors, the present balance against Union College, 
and for which the trustees of that institution are justly accountable, 
is very large, thus : 

* How astonishing will be seen page 44. 



96 APPENDIX H. SENATOR BEEKMAn's REPORT. 

Received from the State, otherwise than by lotteries, (Assembly 
Doc. No. 147, page 2,) granted previously to 1803, $76,612 13 

Interest thereon for forty years only, on the assump- 
tion that the money was not immediately paid 
when granted, 214,513 96 

$291,126 09 

Received from Yates & McIntyre,. 802,323 28 

Interest thereon as above, 1,233,707 02 

Funds received before the State grants were 

made, viz : 

Schenectady patent, $28,357 98 

Difference on sale of old college, 21,399 00 

Sale of old academy, 571 89 

Original subscriptions, 2,707 42 

53,046 29 

Interest thereon for thirty years, 111,397 20 

$2,491,598 88 
The college is entitled to credit by, 

1st. Payments to other institutions and 

cash repaid Yates & Mclntyre, $200,000 00 

Interest for twenty years, 480,000 00 

2d. Property of every kind now claim- 
ed to be in the possession of the 

trustees, 604,340 56 

$1,284,340 56 

$1,207,258 32 

The items making up this property valued at $604,340.56, were 
acquired at dates so widely spread, the latest being March 24, 1849, 
(an item of interest then due on investments,) and the earliest 
probably about 1815,* that it is impossible to make even an ap- 
proximate estimate of the interest to be allowed. A fair deduction, 
however, for this cause, would still leave several hundred thou- 
sands of dollars unaccounted for. 

By the legal document hereinbefore quoted, it appears that 
Doctor Nott, was largely indebted to the Trustees of Union Col- 
lege on account of the loans made by him as President, f out of the 

* How probable ■will be seen page 12. f How largely will be seen page 15. 



APPENDIX H. SENATOR BEEKMAn's REPORT. 97 

College funds to the firm of Howard Nott & Co., before the 20th 
day of December, 1836. The college had previously received, or 
Dr. Nott had received for its account, from Yates & Mclutyre, 
$802,323.28. It is stated in the majority report, (Assembly Doc. 
No. 146,) Appendix C, that Union College received from Dr. Nott 
without consideration^ N. Bliss' bond for $75,000, afterwards ex- 
changed for a deed of one undivided half of tlie Stuyvesant Cove 
property, that the other undivided half thereof came into posses- 
sion of the College on their paying the sum of $58,632. 15, in 1838. 
On the 21st July, 1848, the whole Stuyvesant Cove property was 
conveyed by Union College to Dr. Nott for $177,587.06. Hunters 
farm was purchased by the College for $104,800. Both these pieces 
of property (Minority Report, Assembly Doc. No. 147, page 20,) 
were conveyed under a resolution passed July 22, 1848, to tlie 
president to cancel any cash balances that might be due the said 
president on a final settlement with him, and after such conveyance, 
the treasurer states that a balance still remained due Dr. Nott of 
$41,340.57. These transfers and this indebtedness are certainly 
hard to understand and harder to explain in any of the ordinary 
modes of transacting business. The same Stuyvesant Cove proper- 
ty, one-half of which Dr, Nott conveyed to the college for $75,000 
in 1834, cost him in 1832, only $17,500. So that he transferred to 
his own college within two years after its purchase for $17,500, the 
same property at a price of $150,000. 

The trustees in July 1848, admitted an indebtedness to Dr. Nott 
of $323,727.63. 

These transactions between the president of a college and the 
guardians of its property, although the treasurer appears to have 
regarded them as " erroneous deductions " and " unfounded impu- 
tations," appear in the judgment of the committee on literature 
entirely indefensible. =* 

To show what a proper and judicious administration of such 
funds as have been long under the control of the president of 
Union College, (for his trustees seem never to have interfered 
with his financial designs) it will be instructive to look at the 
present condition of the Smithsonian Institute at Washington. 
James Smithson, of England, left his entire property to the United 

* How indefensible will be seen p. 14 and 47. 

7 



98 APPENDIX H. SENATOK BEEKMAn's REPORT. 

States of Americaj to found at Washington, an institution which 
should bear his name, and have for its object the increase and dif- 
fusion of li:nowledge. The trust was accepted by the United States 
government, and an act passed August 16, 1846, organising tlie 
"Smithsonian Institution." 

The endowment consists of the original sum of $515,169.00, 
received September 1st, 1831, which is to remain forever as a per- 
manent fund. The interest of this amount to 1846, when, by an 
act of Congress, the funds were placed in hands of the board of 
regents, was $242,129.00. 

A very elegant edifice has been almost completed and paid for 
and the building committee have lately paid back a surplus to the 
permanent fund out of the proceeds of the interest set apart for the 
building, for the larger endowment of the institution.* 

It is asserted in Assembly Doc. No. 190, quoting tlie minority 
report, that the property of the college, including losses, exceeds 
the amounts derived from the grants hy the State, by the sum of 
$303,403.82. 

Those amounts from the lotteries alone, irrespective of interest, 
have been shown to be $802,323.28, and wdth simple interest as 
stated above $2,036,030 .30. After making the most liberal allow- 
ance for sums paid otlier institutions and repaid Yates and Mc- 
Intyre, wdth interest thereon, as also stated, it would appear 
that, instead of the property exceeding the grants by the sum 
of $303,403.82, the college has to account for many hundred 
thousand dollars over and above the present property of the insti 
tution as now held, good, bad, and indifferent. f 

The committee recommend that a skilful accountant be employed 
under the direction of the Comptroller, the Attorney General 
and Rev. John N. Campbell, of Albany, one of the Regents 
of the University, to investigate the books of the college, and of 
Yates & Mclntyre, and to report an accurate balance sheet to the 
next Legislature. 

It is extremely doubtful how far the trustees had power to au- 
thorize their president either to claim as his ow^n so large a portion 
of the avails of the lotteries as $111,343.44, or to permit him to 

• For the pertinence of this comparison and the justness of this eulogy, see page 22. 
t S"or the answer, see page 44. 



APPENDIX H. SENATOR EEEKMAn's REPORT. 99 

use the college funds indiscriminately as his own while cliairman 
of the finance ccmmittee, so as to bring tliem in debt to their pres- 
ident in the large sum of $366,177.63, which had at various times 
been received in money or lands from Doctor Nott, witliout consid- 
eration, (see appendix C, page 37, treasurer's reply. Assembly Doc. 
190,) while the professors' salaries were unpaid for tw^o quarters 
about the same time.* 

No portion of the grants of the State was made to the president 
of Union College individually, and all payments from Yates & Mc- 
Intyre were called for as due Union College, according to the 
statement of Mr. Hemminway, the book-keeper of Yates & Mcln- 
tyre.f 

Your committee consider that the present very inadequate results 
from the means furnished by the State to this institution, call for 
legislative investigation in a thorough manner as a warning to 
future financial presidents of learned institutions, and for the pur- 
pose of preserving, so far as possible, what may remain of the 
intended benefactions of former Legislatures. 

The report of the majority of the select committee of the Assem- 
bly of 1849 seems to be fully sustained by the facts of the case, 
and the committee on literature feel free to adopt the concluding 
words of that report as their own, and to say "that the financial 
condition of Union College is unsound and improper. "J 
All of which is respectfully submitted. 

JAMES W. BEEKMAN, 
THOMAS B. CARROLL, 
SAMUEL MILLER. 

• For the reply to this, see pages 52, 18 and 57. 

I For the utter falsehood of this, see page 75. 

J For the pertinence of this deduction, see page 20. 



100 APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 



( K. ) 

REPORT OF THE TREASURER. 

In which so much of the several acts passed, and contracts entered 
into with Yates ^^ Mclntyre as relate to the lottery transactions, are 
presented in the order in which they took place; together vnth thefaial 
scttleraerit of the College with that firm, as set forth in their sworn 
hill of complaint ] and the final action of the trustees in view of the 
whole transaction. 

" An act instituting a lottery for the promotion of litera- 
ture, passed April 13th, 1814. 

" Whereas '^ell regulated seminaries of learning are of immense 
importance to every country, and tend especially, by the diffusion 
of science and the promotion of morals, to defend and perpetuate 
the liberties of a free State ; therefure, 

" § 1. Be it enacted by the people of the State of A'^ew-York, repre- 
sented in Senate and Assembly, That tliere shall be raised by lotte- 
ry, in successive classes, a sum equal in amount to the several appro- 
priations made by this act, together v;ith tlie simple interest accruing 
thereon, till tlie same shall be raised and paid by the managers ap- 
pointed to superintend tlie same : Provided however, that this pro- 
vision for the payment of interest shall not extend to interest wliich 
may accrue on either of the provisions contained in this act for more 
than six years from the time of passing the same. 

" § 2. ^/ind be it be it further enacted. That one hundred thousand- 
dollars be appropriated, to be paid out of the avails of tlie said lot- 
tery in manner aforesaid, towards the completion of the edifices 
already commenced by the trustees of Union College, and for the 
erection of such other edifices as may by them be deemed re- 
quisite. 

"§3. And be further enacted, That thirty thousand dollars be 
appropriated as aforesaid, for the purpose of paying a debt already 
contracted by the said trustees. 

" § 4. And be it further enacted. That twenty thousand dollars be 
appropriated as aforesaid, for the purpose of increasing the library, 
and also the philosophical and chemical apparatus belonging to said 
institution. 

" § 5. And be it further enacted. That the sum of fifty thousand 
dollars be appropriated to augment the small charity fund hereto- 
fore granted by the Legislature of this State, tlie same to be in- 
vested by the trustees of Union College, and the avails thereof to 
remain forever sacred to the relief of indigent students, while 
prosecuting their studies in said institution. 



APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 101 

" § 8. And he it further enacted^ That tlie sum of forty thousand 
dollars be paid to the trustees of Hamilton College, to be by them 
applied as the interests of said college may require, 

" § 9. And be it further enacted^ That four tliousand dollars be 
appropriated to the minister and trustees of the Asbury African 
Church, in the city of New-York, for the purpose of enabling them 
to discharge a debt contracted in the purchase of their church, and 
to establish a school under their direction. 

" § 12, And he it further enacted^ That thirty thousand dollars 
be appropriated as aforesaid, to tlie College of Physicians and Sur- 
geons in the city of New-York, for the endowment of said college. 

" §13. And he it further enacted^ That it shall be tlie duty of the 
trustees of said colleges, to account annually to the Regents of the 
University, for tlie expenditure of tlie money herein appropriated 
tor the use of said colleges, and that said Regents report the same 
from time to time to tlie Legislature. 

" § 14. And he it further enacted^ That the person administering 
the government of this State, be and he is hereby authorised to 
appoint four managers, wlio are hereby empowered to form such 
plan for the said lottery as may appear expedient, to dispose of the 
tickets and to superintend the drawing of the same. 

"§15. And he it fwther enacted^ That the managers appointed 
as aforesaid, sliall hold their appointment subject to the future plea- 
sure of the Legislature, and that they shall have tlie powers and 
be subject to the i*egulations, restrictions and directions contained 
in tlie act entitled, "an act relative to the managers of lotteries," 
passed April 13th, 1813. 

" § 16. And he it further enacted^ That no ticket in any class of this 
lottery, shall be offered for sale till the lotteries heretofore granted 
by the Legislature of this State shall be drawn. 

" § 17. And he it further enacted. That two classes of this lotte- 
ry, as well as of the lotteries heretofore granted, may be drawn in 
each and every year, until the whole be completed." 

It being understood if two classes were drawn in a year, that 
the managers could raise and pay the several grants made in said 
act, in six years, interest was granted for six years, and no more. 
Such however, were the losses and delays which occurred, that at 
the end of eight years not even the interest on said grants had 
been paid. 

To prevent further delay and relieve the institutions from the 
embarrassments occasioned, 

" An ACT TO LIMIT THE CONTINUANCE OF LOTTERIES, WaS paSScd April 

5th, 1822, as follows: 

"§19. Whereas, the public institutions to which grants were 
made originally) in the lottery instituted April 13th, 1814, for the 



102 APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 

promotion of literature, have already suffered materially by delay 
in drawing the same ; and wliereas, it is believed, that said lottery 
might be managed witii greater economy and less liazard, by the 
institutions interested in its success, tiian it has iiitlierto been, or 
can hereafter be, by tlie State j and whereas all that could be thus 
saved, by greater economy in the management of said lottery, 
would go to diminish the loss of said institutions ; and whereas, by 
such an arrangement, the State would be relieved from the hazard 
of future losses ; therefore, 

" § 20. Be it enacted by the people of the State of JVew-York, 7'ep- 
resented in Senate and Assembly^ That it shall and may be lawful 
for said institutions to assume conjointly or to appoint one of their 
number to assume the supervision and direction of said lottery^ and 
from time to time to appoint such and so many managers thereof^ for 
the conducting the same^ and to make such contracts iyi relation to 
the said lottery^ as to them may seem proper^ and to receive the 
avails and hazard the losses^ and be responsible for the payment of 
the prizes oj said lottery for a limited time; in lieu of and as an equi- 
valent for the several specific grants to them therein made, pro- 
vided^ they will accept thereof for any limited time, less than the 
time in which the State can raise and pay said grants, at the rate 
moneys have been heretofore raised and paid, or can, in the 
judgment of the Comptroller^ be calculated, with safety to tlie State, 
to be liereafter raised and paid ; which time s^iall be determined 
by that officer, from the facts and information in Ins possession, and 
a certificate tliereof filed in the office of the Secretary of tliis State 
immediately after the passing of this act. 

" § 21. And be it further enacted^ That whenever said institutions 
shall have severally accepted in writing of the provisions contained 
in tliis act, in lieu of, and as an equivalent for, tlie grants to them 
severally made in said lottery, and shall each of tliem file sucli ac- 
ceptance in the office of tlie Secretary of this State, it shall 
be lawful for tliem to assume the management thereof: provi- 
ded however, and be it further enacted^ that from the time such ac- 
ceptance is filed, the State shall be absolved from all responsibility to 
provide for any loss or losses that may occur on any future class or 
classes of said lottery, and also from, all obligation to pay any prize 
ticket or prize tickets drawn therein, out of any moneys belonging 
to the people of this State. 

^'And whereas the object of this act is not to increase tlie grants 
made to the said institutions, but to contract with them for assuming 
the responsibility and running the hazard, and taking the management 
of the literature lottery, and tluis to place them in a situation to 
save in all future classes of said lottery, by more prudent contracts, 
and more careful management, whatever can be saved out of that in- 
d^nite amount that is liable, on the present plan of conducting said 
lotterys to be raised and absorbed by the recurrence of losses and the 
payment of managers; therefore, 

"§24. Jhid belt enacted, Tliat the annual average amount of 
tickets, according to their sclieme price, m all lotteries hereafter to 



APPENDIX K. SUMMARY OF ACTSj CONTRACTS AND DOCUMENTS. 103 

6e drawn under this act, during the term of years fixed by 
the Comptroller, shall not exceed tlie annual average amount 
of tickets, according to tlieir scheme price, in the lotteries 
already drawn within this State during the five years imme- 
diately preceding the first day of January, one thousand eight 
hundred and twenty-two, which amount of tickets shall he as- 
certained by the Comptroller^ arid a certificate thereof filed in the office 
of the Secretary of this Stale; and said institutions sliall furnish the 
Comptroller a certified copy of the amount of tickets, at their 
scheme price, in all classes hereafter to be drawn, that the same 
may be also filed in the office of the Secretary of this State ; and 
so soon as the whole amount of tickets^ at their scheme price^ autho- 
rized by this act shall have been sold and drawn^ the authority herein 
granted to said institutions shall cease., though the time fixed by the 
Comptroller, in his certificate may not have expired. 

" § 25. ^nd be it further enacted^ That said institutions shall ap- 
ply tlie avails of said lottery (after deducting the expense of manag- 
ing the same) pro rata, according to the provisions of the original dct^ 
in which said grants were made, and make report thereof, annually 
to the Regents of the University, as said act directs. 

' § 26. And be it further enacted^ That if said institutions shall 
accept of the provisions of this act, then and in tliat case it shall 
be their duty to raise and pay the grant made by lottery to the 
Historical Society in tlie same proportions as the otlier grants are 
raised and paid ; and in consideration thereof, tlie limitation of 
time contained in the first enacting clause of this act, shall be 
proportionably extended." 

The foregoing act (as will be seen above § 20,) authorized the 
institutions or the institution who should assume the supervision 
of said lottery, to appoint such managers and make such contracts 
for the drawing of the same as shall be deemed proper. And it 
provided (§ 2b.) for the payment of the expense of the management^ 
and required the residue of the avails only to be paid over, pro rata^ 
to the institutions interested. Still, as it also provided (§ 21,) that 
from the time such supervision was assumed, the State should be 
absolved from all responsibility for the payment of any of the claims 
against said lottery^ none of the institutions interested could be in- 
duced to accept of the supervision and management of the same. 

In this emergency, the President of Union College proposed to 
purchase out all the other institutions, and having done so, to run 
all the hazards incident to the drawing of said lottery, with no 
other security for indemnity against loss, or compensation for ex- 
penses and services, than the 2J per cent, already granted by law 



104 APPENDIX K SUMMARY OF ACTSj CONTRACTS AND DOCUMENTS. 

for that purpose • provided the supervision and management of 
said lottery was committed exclusively to him. 

Whereupon a resolution of the trustees was passed in the words 
following : 

Resolved^ That the treasurer of this board be authorised, by and 
with the consent of tlie president of tlie college, to accept, under tlie 
seal of this board, of tlie provisions of the act to limit the contin- 
uance of lotteries, passed April 5th, 1822. And tliat the said trea- 
surer be further autliorized, under the seal of this board, to assume 
such responsibilities, and to give and take such securities, and 
to make such contracts relative to tlie lottery instituted for the 
promotion of literature, or any part tliereof, and to pledge or alien- 
ate such property belonging to this board, in carrying tlie same in- 
to effect, as the president of the college shall approve^ to whose super- 
vision the same is hereby committed^ with authority to exercise^ in 
behalf of this institution^ all those powers vesting in it by virtue of 
the aforesaid act to limit the continuance of lotteries.'''' [Chancery 
Docs, § 2.) 

In conformity to said resolution the president immediately pro- 
ceeded to purchase out, in behalf of Union College, tlie entire in- 
terest of all the otlier institutions. This interest amounted to 
195,770.62, (Chancery Docs. § 58.) for the whole of which he be- 
came personally responsible. He also sanctioned a contract, con- 
veying, after said purchases, to A. Mclntyre and J. B. Yates, the 
entire interest of Union College in said lottery for $276,090.14, 
which contract was in the w^ords following : 

Original Contract with A. McIntyre and J. B. Yates. 

" Whereas by an act of the Legislature of this State, entitled ' an 
act to limit the continuance of lotteries,' passed April 5, 1822, cer- 
tain powers were vested in the several public institutions interested 
in the lottery instituted for the promotion of literature, on tlieir 
acceptance of said act : and whereas certain of said institutions 
have empowered the trustees of Union College to act in their be- 
half, in accepting and executing the provisions of said act ; and 
whereas the other institutions may empower tlie said trustees of 
Union College to perform in behalf of said institutions the same 
acts ; now therefore, in case all the requisite powers vesting in said 
institutions jointly, on tlieir acceptance of the conditions of said 
act, shall become vested in the trustees of Union College, so as to 
enable them legally to act in tlie premises, this indenture, made the 
twenty-ninth day of July, in the year of our Lord one thousand 
eight hundred and twenty-two, between the said trustees of Union 
CoUege, in their own bclialf, and in behalf of tlie other institu- 



APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 105 

tions, for which they are now or may herefter be authorised to act, 
of the jBrst part, and Arcliibald Mclntyre and Jolin B. Yates, of 
the second part, Witnesseth, that tJie party of the first part, for 
and in consideration of the sum of two hundred and seventy- 
six THOUSAND AND NINETY DOLLARS AND FOURTEEN CENTS, tO tliem 

in liand paid, or secured to be paid witli interest annually, and 
also in consideration of tlie covenants herein contained, doth cove- 
nant and agree to transfer to tlie party of the second part, all tlie 
right and title of the said party of the first part, in their own riglit, 
and as legally representing the aforesaid institutions, in and to the 
wliole amount of tickets at their scheme price, authorized to be 
sold by virtue of the act aforesaid. 

" And it is further understood and stipulated between the par- 
ties, that tliis contract shall not become obligatory on tlie party of 
the first part until tlie party of the second part shall have executed 
to tlie party of the first part, a bond with sureties to the satisfac- 
tion of the treasurer of Union College, in the penal sum of seven- 
ty thousand dollars conditioned for tlie true and iaithful perform 
ance of tlie stipulations contained in this contract. 

''And it is further stipulated that all the classes of said lottery 
shall be drawn by or under the direction of the board of managers^ 
or such other persons as they shall appoint or approve. The said 
board of managers to be appointed by the President of Union Col- 
lege. In witness whereof Henry Yates, Junior, treasurer of Union 
College, in virtue of a resolution, hath hereunto afiixed the com- 
mon seal of the college, and signed his name; and the parties. of 
the second part have affixed their seals and signed tlieir names. 
j^— — -— — >j HENRY YATES, Jun., 

' f Treasurer of Union College. 
nion College. ARCH'D McINTYRE, 
^ J. B. YATES. 

" Duplicate acknowledged by Archibald Mclntyre and John B. 
Yates, in presence of WILLIAM JAMES. 

" Having examined the within contract, I consent to and approve 

of the same. ELIPHALET NOTT. 

" Supplement. 

" Whereas an agreement has this day been executed by the trus- 
tees of Union College of the first part, and Archibald Mclntyre 
and John B. Yates of the second part : Now therefore, this agree- 
ment, made on the twenty -ninth day of July, one thousand eight 
hundred and twenty-two, between the aforesaid parties, Wit- 
nesseth, that it was understood and agreed between the said 
parties to the aforesaid agreement, to which this agreement is 
a supplement, and is to constitute a part as of one ihstru 
ment, and it is expressly stipulated in this agreement that the 
said party of the second part shall pay, and the said party of th^ 
second part do therefore covenant to pay ^ for supervision and manage 
ment^ the same per centum on each class immediately after the draw 



106 APPENDIX K. SUMIVIARY OF ACTS J CONTRACTS AND DOCUMENTS. 

ing thereof^ as has heretofore been 'paid to managers appointed by the 
State J which payment shall be made hy depositing in the Mohawk 
Bank^ or such other bank as may be designated^ to the credit of the 
President of Union College^ such per centum^ of whicli payment the 
certiiicate of sucli bank shall always be a sufficient vouclier. 

" And whereas events may occur that shall prevent the party of 
the second part from paying their note of two hundred and seventy- 
six THOUSAND AND NINETY DOLLARS AND FOURTEEN CENTS, giVCU aS 

one of t!ie considerations of tliis agreement, at tlie time tlie same 
is stipulated to be paid : It is, therefore, further agreed, that if be- 
fore the end of the year eighteen Imndred and twT.nty-three, the 
said party of tlie second part sliall elect lo pay said note in annual 
instalments of tiiirty-nine tliousand three hundred and twelve dol- 
lars, cornmencino- from the day the interest commenced on said 
note, and continue until said note shall be fully paid, said party 
sliall be allowed to do so. In whicli event, said party sliall imme- 
dately after the drawing of each class deposit to the credit of the 
treasurer of Union College for safe keeping, in tlie Manhattan 
Bank, or such other bank as may by him l)e designated, such part 
of the aforesaid annual payment as shall bear the same proportion 
to the whole annual payment, as the amount of tickets in said 
class reckoned at their scheme j^rice, shall bear to four liundred 
forty -nine tliousand two hundred and eighty dollars, a certificate of 
wliicli deposit shall be sufficient evidence of the receipt thereof 
by tlie treasurer aforesaid, and tlie amount of the several receipts, 
shall on the last day of every year, reckoned as aforesaid, be en- 
dorsed ; or if not endorsed shall have the effect of an endorsement 
thereof on the aforesaid note. 

And it is further stipulated, that the said party of the second 
part m.ay at any time anticipate the payment of the stipulated annual 
■payments as aforesaid^ by depositing the same to the credit of the 
treasurer of Union College^ as aforesaid^ on or before the first day of 
tiie year, commencing as aforesaid, in wluch such payment would 
otlierwise be made, in which case, a rebate in the amount shall be 
made equal to the amount of interest that would accrue on such pay- 
ment during the whole time the same is anticipated, except six months; 
and though such rebatement be made in the deposit, the full sum of 
thirty -nine thousand three hundred and twelve dollars shall be en- 
dorsed therefor, on the aforesaid original note, at the close of the 
year, reckoning as aforesaid, in which the same w^ould otherwise 
have been fully deposited or if not so endorsed, the deposit shall 
have tlie efiect of such endorsement. 

"And it is further stipulated by the party of the second part, to 
sell on tlie first four days of sale, in each class, at the scheme 
price to adventurers, and to the several licensed lottery dealers in 
sucli proportions as may appear discreet, and to sucli amount as 
may be required, except tiiat tlie said party of the second part may 
always retain one-tliird part of eacli class for their own use, and 
such otlier and larger proportions as may from time to time be 
consented to, either by the President of Union College, or b^ 



APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 107 

the hoard of managers appointed as aforesaid. In witness where- 
of, Henry Yates, Jr., treasurer of Union College, hatli hereunto 
affixed the common seal of Union College, and has signed his 
name in virtue of a resolution ; and the parties of the second part 
have affixed their seals and signed their names. 

HENRY YATES, Jun., 

Treasurer of Union College, 
ARCHIBALD McINTYRE, 
J. E. YATES. 



SEAL 

of 

Union College. 



" Interlineations being made before execution, and all acknow- 
ledged in my presence by Archibald Mclntyre and John B. Yates. 

WM. JAMES. 

" Having examined the above contract, I consent to and approve 
of the same. ELIPHALET NOTT." 

The aforesaid 2^ per cent granted by law to lottery managers, 
for services and expenses,* was uniformly paid by the State to the 
managers of the literature lottery till, the supervision and manage- 
ment thereof was, under the act to limit the continuance of lotte- 
ries, transferred to Union College. 

This same supervision and management was by said college trans- 
ferred to its President, and with that transfer this same 2^ percent, 
w^as, as appears, placed at his disposal, as set forth in the above 
contract ; and this not only in consideration of iiis assuming per- 
sonally said supervision and management, but also in consideration 
of his becoming personally responsible (a responsibility in which 
no other trustee was found willing to participate,) for the payment 
of $95,780.61, to other institutions, for the extinguishment of 
their claims against said lottery 5 and in consideration also, of his 
becoming personally liable for those other indefiuite contingent 
claims to whicli he must be exposed in consequence of the State's 
being now absolved from all responsibility. But though tliis great 
additional responsibility w^as assumed by the President in assuming 
the supervision and management of said lottery, it appears from his 
report to the trustees, to have ever been his intention, after pro- 
viding for expenses, services and hazards, to appropriate liis entire 
interest in whatever remained of said per centage (usually styled 

* An Act relative to the managers of Lotteries, passed April 13, 1813. 
Sec. IX. " And be it further enacted that on the settlement of the accounts of the several 
lotteries hereafter to be drawn in this State, the Comptroller shall allow 15 per cent on th«» 
sum raised by each lottery to the said managers, in lieu of all compensation for services and 
expenses in conducting the drawings of the same," 15 per cent on the amount raised in » 
lottery, being 2^ per cent on the amount of the tickets, at their scheme price, contained therein. 



108 APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS 

the President's fund,) to Union College, or some kindred institu 
tion connected therewith, as well as his interest in §8,500 drawn tf 
a lottery ticket, which though private property he had long sinc^ 
caused to be placed without consideration in the hands of the 
treasurer. 

Under this contract, Yates k, Mclntyre having elected to pay the 
sum stipulated, with interest, in ten equal annual payments contin- 
ued to operate successfully till the 4th of January, when in conse- 
quence of their extensive speculations, they became exposed to 
bankruptcy, and apphed for assistance to the President of Union 
C'^llege in the words following : 

Application of Yates & McIntyre to E. Nott for Assistance. 

Eev. E. Nott, President of Union College. 

Sir : We have stipulated, as you are aware, to pay the trustees 
of Union College the sum of two hundred and seventy-six thou 
sand dollars, witliin ten years, with interest, annually, for and in 
consideration of their transferring to us their rights in the grants 
made by the act to limit the continuance of lotteries. It has be- 
come necessarv that we should intbrm you, that such have been 
our losses tliat we have no reasonable prospect of being able to pay 
the sum stipulated, or even to pay the prizes in the lottery now 
pending, unless we can procure immediate pecuniary assistance 
to a large amount. If such assistance can be procured, we are con- 
fident that we shall be able to fulfill our contract with the college 
and saA^e ourselves harmless. 

" In view of these circumstances, we have thought it our duty to 
propose that you and the treasurer should raise for our imme- 
diate relief one hundred thousand dollars, together with 
SUCH further sum as may be necessary to sustain our credit, 
until w^e can be fully relieved, by converting our property into 
money, and collecting the amounts due us, which are still good, 
but merely delayed in consequence of the general pressure. And 
in consideration thereof we are willing to stipulate to pay you 
SUCH additional sum as shall, together with the §276,000 for 
which we admit we are now holdex, amount to elevein per cent. 
ON the whole amount of tickets sold, or to be sold by us, under 
said act ; the same to be paid estimating tlie per centum on the 
tickets sold at tlieir scheme price in each class, and in all the classes 
hitlierto drawn, as well as those hereafter to be drawn, under said 
act, immediately after the drawing thereof. 
" With respect, we are, 

" Your obedient servt's, 

" YATES & McINTYRE." 



APEPNDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 109 

The relif^f solicited by Yates & Mclntyre, to the extent of $100,- 
OOOj was at once provided, and a short time thereafter $40,000 
more was provided by tlie president, {^Chaiicery Docs^. § 98.) togeth 
er with other and subsequent sums to a very large amount. 

Having been thus sustained, Yates & Mclntyre prosecuted suc- 
cessfully the drawing of the literature lottery (the only lottery in 
wiiich the college was interested,) to its close. This close took 
place Nov. 10th, 1827, (^Chancery Docs. § 170.) The accounts for a 
final settlement with tlie college and the president were made up 
by Yates & Mclntyre tliemselves to the 1st of August, 1828. 
(Chancery Docs. §204.) and a final settlement w-as effected on the 
6th of December, 1828, as follows : (Chancery Docs. §§229, 230.) 



110 APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 



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114 APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 

In this settlement, the entire amount paid in behalf of Union 
College and the other institutions under the original contract of 
July 29j 1822, exclusive of interest was $276.090 . 14. It was as cal- 
culated by Prof. Gillespie, (p. 44.) including interest §414.367. 
The additional amount paid under their stipulati^'n of January 4th, 
1826. with the president, as above set forth, including interest^ 
was $104,143.89. The total amount paid under both contracts was? 
as appears from receipt, $512,233.62. [Chancery Dr.Ts. ^ 229.) 

Tliis settlement was made under the assumption that the htera- 
ture lottery contained §4,492,800, worth of tickets, {Chancery 
Docs. § 228g.) which was, however, afterwards adjudged not to be 
the case. 

During the drawing of the literature lottery, an act having been 
passed for the sale of ticket in the Albany land lottery, an overture 
was made to Dr. Xott, in the words following : [Chanc. Docs. § 111.) 

Overture of Yates & McIntyre to pay six and thirty-one 
one-hundredths per cent. 

Xew-Tork, May 30M, 1826. 

Rev. Sir : In order to bring all the lotteries of the State of Xew- 
Tork to a clo^e, within the time for closing the Literature and 
Fever Hospital Lotteries, the Legislature Jiave passed an act hold- 
ing out strong inducements to the subscribers to accept of the con- 
ditions of the same, entitled -'an act to enable tlie mayor, alder- 
men, and commonalty of the city of Albany, to dispose of tickets 
in a lottery, heretofore granted, and to limit the continuance of the 
same,-' passed 13th April, 1826, under which act the subscribers 
have made a contract in the execution of which they hope to be 
able to indemnify themselves for the heavy losses they have hereto- 
fore sustained ; ichich contract-^ however^ they cannot execute without 
your consent and co-operation ^ as it will require a further con- 
tinuance of the heavy personal responsibilities assumed hy you on our 
hehalf And on such condition that such consent and co-operation 
is granted by you ; we hereby stipulate and engage that, (after 
having drawn for the college $2,004,099 worth of tickets, reckon- 
ed at their scheme price, of actual sales, and 81,654,497 worth of 
actual sales, for our own benefit as assignees of the Fever Hostital 
Lottery.) we will, within ninety days after the drawing of each 
subsequent class, after the drawing of said two sums, deposit to your 
credit^ in such bank as you shall designate, six and thirty-one 
one hundredths per centum on the gross amount of all tickets 
actually sold therein, together with the interest accruing thereon 
fi-om tlie day of drawing. 

(Signed,) " YATES & McINTYRE." 

{Chancery Docs. § 259.) 



APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 115 

To which the following answer was returned : [Chancery Does. 

§116.) 

" Union College, June lOth, 1826. 
" Gentlemen : To the written propositions submitted in youi 
letter, dated May 20th, in regard to the contract you liave made 
under an act entitled ' an act to enable the mayor, aldermen and 
commonalty of tlie city of Albany to dispose of tickets in a lottery 
heretofore granted,' and to limit the continuance of lotteries, passed 
April 13th, 1826, I hereby commmunicate my acceptance; and 
you will consider this as evidence of my consent, and the pledge 
of my co-operation granted on the terms contained in the proposi- 
tion submitted. 

" Very respectfuly yours, &c., 

^'E. NOTT." 
" Messrs. Yates k McIntyre." 

'' And this I do the more cheerfully, as the trustees of the college 
are not made parties to the contract under the aforesaid act of 
April 13th, 1826, and will not therefore be considered responsible 
for the hazard which may arise from proceedings had under it. 
" Very respectfully yours, &c. 

" E. NOTT, as President.'' 

This stipulation was modified May 31, 1829, and again modified, 
July 15, 1830, as follows : {Chancery Docs. § 378.) 

Stipulation of Yates & McIntyre to pay five per cent. 

" Whereas, the claims of Union College against the subscribers, 
Yates & McIntyre, arising out of their contracts under the law to 
limit the continuance of lotteries, passed the 5th of April, 1822, 
have been fully paid, or provided for, by notes given August 1, 
1828, when said contract was cancelled; and whereas, the stipulation 
of the subscribers entered into with Eliphalet Nott, on the 30th of 
May, 1826, under the " act to enable the mayor, aldermen and 
commonalty of tlie city of Albany to dispose of tickets in a lottery 
heretofore granted, and to limit the continuance of tlie same,' pass- 
ed April 13th, 1826, was for and in consideration of personal ser- 
vices rendered, or to be rendered, and hazards run on our account; 
and whereas ; the hazards are diminishing while the difficulty of 
conducting the lottery are increasing therefore, in lieu of said 
stipulation, entered into on the 30th of May, 1826, and of all 
the personal demands arising as aforesaid, out of the services 
rendered and hazards run by said Nott for us, in regard to so 
much of the consolidated lottery as shall have been or be drawn 
after the first day of May last, the subscribers promise to pay to 
said Eliphalet Nott, within ninety days after the drawing of each 
class, drawn as aforesaid, after the first of May last, five per centum 
on the gross amount of tickets sold therein. 

" YATES & McINTYRE. 

''Mw-YorJ€, July, 15, 1830." 



116 APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 

Though the overture for obtaining assistance was made by Yates & 
Mclntyre during the drawing of the literature lottery, in whicli alone 
Union College had any interest, neither of these stipulations were 
entered into till this lottery was fully drawn, and a final settlement 
made with the college in relation thereto. Under this latter stipu- 
lation, Yates & Mclntyre continued to account until the 26th of 
January, 1832, when they refused to do so any longer; in conse- 
quence of which the president filed his bill of complaint, in which, 
without the consent or even knowledge of the trustees, he joined the 
College as plaintiff. 

To THIS BILL Yates & McIntyre filed a demurrer, assigning 
as a cause, " That it does not appear that the trustees of Union 
College have any interest in or title to the relief sought by the said 
bill, or any equity which entitles them to any discovery from these 
defendents." In this demurrer tliey say, " The consideration of the 
written contract of the 10th of June, 1826, formed by the over- 
ture of Yates & Mclntyre, and the letters of E. Nott, if any there 
was, flowed exclusively from E. Nott, in his individual capacity. 
The letter containing the pledge of his co-operation was written 
by him in his individual capacity. The corporation was to 
do nothing, and to risk nothing ; and consequently was to re- 
ceive nothing, more than the moneys previously engaged to be 
paid to it. The per centage of 6yVo ^'^s not to commence until 
after the full amount of those moneys, and of the Fever Hospital 
grant should be paid, and from its commencement, it was to be de- 
posited, not to the credit of the treasurer, like the 8| per cent., 
nor the President of Union College^ like the 2 J per cent, but to the 
credit of ^ your orator, Ehphalet Nott,' in such bank as he should 
designate. So far, therefore, as the written agreement of the 10th, 
of June, 1826, secures the payment of the per centage now claim- 
ed, (and it is only in this respect that it is at all material in the 
present suit,) it was evidently intended, and is represented in the 
bill, for the personal benefit of E, JYott as an individual. ^^ {See 
Yates fy Mclntyre^s demurrer ^ page 27.) 

" The acts done by E. Nott, and by him and Yates & Mclntyre, 
in reference to moneys now in controversy, and more especially the 
subsequent modifications of the contract of June 10th, 1826, are 



APPENDIX K. SUMMARY OF ACTS, CONtRACTS AND DOCUMENTS. 117 

all of the same character. They proceed on the assumption, that 
the present and absolute title to all the monies agreed to be paid by 
Yates and Mclnlyre, as per centage, on the contingent remainder 
of the consolidated lottery, was vested, by the contract, in E. 
Nott, in his individual capacity j and that the trustees of the college 
had no interest in, or control over, such per centage." (Demurrer, 
page 29.) 

"The per centage of $Qj^^\ is treated as one in which the college 
had no control. • It is to be paid partly in money deposited to the 
individual credit of E. Nott. (Demurrer page 30.) 

With respect to "E. Nott's argreement with Mclntyre to ac- 
cept for tlie future five per cent, and the paper subsequently sent 
by him in the execution thereof, the same remark as before is appli- 
cable ; to which it may be added, that the agreement and letter 
both proceed on the assumption that the affair to which they relate 
was purely a private one between Yates & Mclntyre and E. Nott." 
(Demurrer, page 31.) 

The treasurer cannot present what followed more intelligibly to 
the board than by transcribing a portion of the reply of the com^ 
mittee appointed on the part of Union College to confer with Ham- 
ilton College on this whole subject. 

*^ The lottery question," (as appears by their statements,) " hav- 
ing been referred to the Attorney-General, (see Assembly Doc, 
vol. 4, p. 10,) by the Legislature, he reported that the whole amount 
of tickets contained in the literature lottery, in place of being 
$4,948,597 worth, as had been supposed, was only $,3,693,800 
worth, making a difference of |1, 250,797 worth of tickets in lottery, 
and of $138,027 in the amount of per centage to have been paid 
by Yates & Mclntyre. Whereupon Yates & Mclntyre tiled a bill 
in Chancery for the recovery of this excess of per centage, claimed 
to have been paid in error. 

" After considering the report of the Attorney-General, and per- 
ceiving if said lotteries contained only $3,693,800 worth of tickets, 
that tliere was no contingent residue when the stipulation of tl^ 
24tli January, 1836, was entered into, and of course that the stipu 
lation of May 31st, predicated on such residue, must be invalid ; 
a negociation was, by advice of counsel, opened with a view to 
effect an amicable settlement, and thus prevent a protracted and 



118 APPENDIX K. SUMMARY OF ACTS, CONTRACTS AiS^D DOCUMENTS. 

expensive litigation, \^iien it was fonnd that Yates k Mclntyrp 
would on their part, agree to cancel their entire claim agains^ 
Union College for all pay men rs made in error, provided the college 
would, surrender to them certain evidences of debt amounting to 
$126,037.57, and furtlier that tliej would agree to pay p 50,000 in 
ten years, in installments, provided tlie claim against tliem for the 
payment of per centage under tlieir stipulation ejitered into July 
15, 1830, witii Dr. Nott, for personal advances, hazard, &c., was 
cancelled ; and it was also found that Dr. Nott would, on his part, 
also agree to cancel said stipulation on said terms. 

" Whereupon an article of agreement was entered into betiucen the 
Trustees of Union College and, the president^ setting forth that the 
$150,000 to he received from Yates §" Mclntyre^ was to he received on 
account of the stipulation aforesaid entered into with him for per^ 
sonal advances^ ($'c., and for the recovery of which, said suit had heen 
commenced, and that the same was to he accounted for to him on a 
final settlement. 

" After Avhich a tripartite agreement, on the conditions above set 
forth was entered into between Yates & Mclntyre, the trustees of 
Union College, and the president of Union College, in which the 
parties severally agreed, not only to discontinue the suits which had 
been commenced, but also to relinquish all cause of future suits, 
arising out of said lottery transactions. 

'' The president of Union College Imy inghj great personal exertions 
and at great personal peril, {iwnhichno other trustee was. found willing 
to participate, and which all considered in him rash and even presump- 
tuous,) succeeded in sustaining the credit of Yates and Mclntyre, 
till the entire Literature lottery was drawn, and having also suc- 
ceeded in securing from said lottery, after paying all expenses, a 
considerable surplus to be divided between the colleges, it was lelt 
that Union College, whose interest had been so greatly and gratui 
tously promoted by hazards assumed by him in its own behalf, 
would therefore come forward with an ill grace to claim to share in 
the avails, if any there should be, of hazards subsequently assumed 
by him in hehalf of others, and however frequently the trustees of 
Union College may have expressed their sense of the indebtedness 
of said college to its president for his interference as aforesaid, still 
they deem it proper distinctly to state that they neither received, 
nor claim to be entitled to receive the compensation stipulated to 
be paid to the president of said college in the form of per centage 
for moneys, advances or hazards run by him in behalf of Yates and 
Mclntyre." J. P. CUSHMAN. 

A. C. PAIGE. 



APPENDIX K. SUMMARY OF ACTS, CONTRACTS AND DOCUMENTS. 119 

To which may be added what follows from the report of the 
select committee : 

*' It has appeared to your committee 

" That the embarrassments of Messrs. Yates and Mclntyre, ac- 
cording to tlieir own statements, arose from speculations .entered 
into by them apart from tlie lottery business, and wliolly un- 
connected witli Union College. 

" TJiat such was the nature and extent of their embarrassments, 
that they would have been ruined, but for the timely and efl&cient 
and continued aid afforded them by the President of the College. 
That the contracts made by them with the pre'sident, were upon 
adequate and full consideration ; and that the frequent changes 
complained of by Yates & McTntyre, were in fact made at their 
urgent request ; and that the repeated modifications have invaria- 
bly been in their own favor. That the president has furnished 
extensive means, performed important services and run great per- 
sonal hazards, for tlie contractors on their repeated applications, 
and this evidently without any sinister motive, without tlie design of 
personal gain ; but for the sole purpose of aiding the contractors, 
and of securing and advancing the interests of Union College, or 
some kindred institution connected therewith. That the course of 
the president tliroughout all the novel and difficult emergencies 
which have occurred in conducting this whole business, has been 
marked by fairness and liberality towards the contractors, and 
by firmness, sagacity and disinterested zeal for the interests 
of the college and of education. That the full powers with 
which he was invested by the trustees, have been exercised with 
wisdom and success ; and from the information ttiey have received 
of his views in relation to this whole subject, your committee are 
of opinion that the interests of the college and of science require 
that these plenary powers should be continued. 

" Your committee therefore recommend, that the present treasurer 
of Union College be authorized, by and with the advice of the 
financial committee, to perform hereafter, in any transactions spring- 
ing out of the supervision of the lotteries, all the acts that the form- 
er treasurer was authorized to perform. That by and with the ad- 
vice of the financial committee, he receive from the president any 
bonds and mortgages, or other property, taken by him during the 
supervision of said lotteries ; and co-operate with him so far as 
may be, in the investment and management of an}^ funds that have 
been or may be hereafter received by him in consideration of per- 



120 APPENDIX K. SUMMARY OF ACTS, CONTRACTS ASD DOCUMENTS. 

sonal services rendered and hazards ran ; but which funds are in- 
tended for the ultimate benefit of Union College, or some kindred 
institution connected therewith. 

" All of which is respectfully submitted, 

W. L. MARCY, 
SILAS WRIGHT, Jr. 
JOHN P. CUSHMAN 

CommiiteBo 
" All which is respectfully submitted, 

ALEXANDER HOLLAND, Treasurer, 
Schenectady, July 2(5th, 1852. 



121 

Whereupon the following resolutions were adopted. 

I. Whereas the 2 J per cent granted by law, and uniformly paid 
to lottery managers for services and expenses, was by. contract, 
placed at the disposal of the President, in consideration not only 
of his assuming, personally the supervision and management of the 
Literature Lottery, but in consideration also of his becoming per- 
sonally responsible for the payment of $95,780.61 to other institu- 
tions for the extinguishment of their claims against said lottery, and 
in consideration also of his assuming personally, in behalf of the 
institution, other and greater responsibilities, as hereinbefore set 
forth : See p. 104 and 109. 

And whereas it appears from his reports to the Trustees that it 
has ever been his intention, after providing for expenses, services 
and hazards, to appropriate to Union College or some kindred in- 
stitution connected therewith, his entire interest in whatever re- 
mained of said per centage, as well as his entire interest in $8,500 
heretofore drawn by a lottery ticket, wliich though private property, 
has been deposited, without consideration, in the hands of the Trea- 
surer of this Board: See annual report to Leg: April 19th, 1823, p. 7. 

"Therefore, resolved, Tliat all amounts arising from either 
of the aforesaid sources, or otherwise, which have been deposited 
with the Treasurer, by the President, without consideration, be 
passed to his credit in the books of the college, and accounted for 
to him by the Treasurer with the assent and concurrence of the two 
other members of the finance committee on a final settlement, that 
the same may be included in the special fund instituted by him in 
conformity to his reports to this board, July 1831, 1832 and 1833; 
(see pages 32, 33, 34,) in conformity to an act of the Legislature, 
passed 14th May, 1840, authorizing certain trusts, and an act passed 
May 26, 1841, amending the same ; and in conformity to the reso- 
lutions of this board, passed July 26th, 1837, and July 27, 1841. 
(Book of Minutes JYo, 3, page 122.) 

II. Whereas the only stipulation ever entered into by the Presi- 
dent of Union College with Yates k Mclntyre in which the college was 
made jointly responsible, and therefore entitled jointly to share in 
the profits, if any, was that of Jan. 4, 1826, (Chan. Doc, §80,) p. 108, 
modifying the original contract with said firm, of July 29, 1822, 
{Chancery Docs. §29;) and whereas Union College has not, and never 
had, any interest in or control over the Fever Hospital Lottery, the 
Albany Land Lottery, or any other lottery drawn after the 10th Nov. 
1827, when the Literature Lottery closed ; {Chancery Docs. §170 :) 
And whereas the above recited stipulation entered into by Yates & 
Mclntyre, May 30, 1826, to pay to Eliphalet Nott, 6 yW per cent ; 
{Chancery Docs. §259,) and also the above recited stipulation of July 
15, 1830, substituted for that of May 30, 1826, to pay to him 5 per 
cent out of profits of lotteries to be subsequently drawn, were in con- 
sideration of advances made, services rendered and hazards run by 
him personally in their behalf, in which the college had no interest ; 
and whereas, the said Jj]. Nott, has nevertheless signified, m his re- 



122 

ports as President, heretofore made to this board, that it was his 
intention, " after providing fur expenses, services and hazards, to 
appropriate the residue of the avails of said stipulations to Union 
College, or some kindred institution connected therewith :" p. 114 
and 115. 

Therefore resolved. That any payments arising out of said stipu- 
lations that have been, or may liereafter be received by the Trea- 
surer of Union College, be also credited to tlie President, and ac- 
counted for to him by the Treasurer, with such assent and concur- 
rence in said final settlement, that the same may also be included 
in said special fund instituted by him as aforesaid, in conformity to 
the resolution by this Board passed July 26, 1837. p. 48. 

The resolutions referred to above are as follows 

" Whereas, Dr. Nott has signified to the committee his readi- 
ness to transfer to Union CollegCj not only its entire portion of 
said lands, bonds and mortgages, to be held in its own right, but 
also the jjortion lelonging to himself , on the terms heretofore set 
forth in his reports to this board for the years 1831 and 1832, as 
soon as the same shall be definitively ascertained. * * # 

'' And further, that the treasurer be also authorized to receive 
from Dr. Nott in like manner, the remaining portion of said addi- 
tional amounts which shall be found to belong to him, and enter 
the same in a separate fund, to be denominated Dr. Nott's Fund, 
and to be held and applied conformably to to the aforesaid report 
of Dr. Nott to this board, of July, 1831, and that a separate an- 
nual report be made, hereafter, thereon to this board." 

I certify the above to be a true extract from the minutes of the board of trustees of TTnioo 
College, at a meeting held at Schenectady, July 26th, 1837. 
Nov. 28, 1851. . L. H. WILLARD, Acting Register. 

In conformity to the above resolutions, and that the balance, 
when ascertained, may be carried to the special fund in question, 
for the use of Union College, as set forth in said report of Doctor 
Nott, the subjoined account has been made out as directed by the 
board of trustees, July 26, 1852. 



123 



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128 

RESOLUTIONS OF BOARD OF TRUSTEES IN RELATION TO 
TRUST FUNDS, under the aforesaid acts of May 14, 1840, (page 49,) 
passed July 21, 1840, with special reference to the Trust Fund in con- 
templation from F resident Nott. 

Whereas, by a statute of the Legislature of this State, entitled "an 
act authorizing certain trusts," passed May 14, 1840 ; and by a statute 
entitled " an act in addition to the act authorizing certain trusts, passed 
May 14, 1840," which last mentioned statute was passed May 26, 1841, 
real and personal property may be granted, conveyed, devised and bequeathed 
to any incorporated college, or other literary incorporated institution in this 
State, in trust ; 1. To establish and maintain an observatory ; 2. To found 
and maintain professorships and scholarships ; 3. To provide and keep in re- 
pair a place for the burial of the dead ; or 4. For any other specific purposes 
comprehended in the general objects authorised by their respective char- 
ters ; which trusts may be created subject to such conditions and visitations 
as may be prescribed by the grantor or donor, and agreed to by the trus- 
tees, and are to continue for such time as may be necessary to accomplish 
the purposes for which tiey were created. . 

And whereas, it is desirable that the terms and conditions on which the 
trustees oWjnion College will receive such grants, devises and bequests of 
real or personal property for the objects above specified should be known, to 
the end that enlightened and benevolent individuals disposed to promote any 
of the said objects, may feel assured that their designs will be faithfully and 
strictly executed, therefore, 

Resolved, That this board will accept the conveyance, devise or bequest 
of real or personal property, in trust, for the endowment of a professorship 
in any of the sciences, arts or professions, provided such property shall be 
lufficient to produce an income of at least one thousand five hundred dollars ' 
annually, upon the following terms, conditions and stipulations : 

1. The donor shall be entitled during his life to nominate to the trustees 
a proper person to fill such professorship, and if the same be not concurred 
in by them, to make other nominations until some one shall be accepted and 
agreed to by the said trustees ; and any vacancy that may happen to be 
filled in like manner. 

2. The donor may in the instrument creating the trust, or in any other 
writing signed by him, appoint a visitor or visitors to act either in his stead 
during his life time, or after his decease, who shall have authority, and whose 
duty it shall be to see that the property transferred is safely and prudently 
invested and managed, that its income is faithfully applied to the objects of 



• 129 

6he trust, and that the incumbent of the professorship duJry fullfiUs all the 
duties appertaining thereto. 

3. The donor may provide for the appointment of such visitor or visitors 
as often as vacancies may happen, in such manner as he may deem expedi- 
ent ; but in case no such provision be made, or the same be not executed 
within one year after any vacancy, the trustees of Union College shall appoint 
such visitor or visitors with all the privileges and authority, and subject to 
all the duties of his predecessor. 

4. The visitor or visitors, after the decease of the donor, or during his 
life time if authorised by him, shall be entitled to nominate an incumbent to 
the professorship in the same manner as herein provided in respect to the 
grantor. 

5. All nominations of a professor shall be in writing, and shall be made 
within one year after the occurrence of a vacancy ; and if none be made 
within that time, the Board of Trustees may proceed to appoint a profes- 
sor without any nomination. 

6. The donor may prescribe the name of the professorship : if not pre- 
scribed by him the trustees will give it the name of the donor. 

Mesolved, That this board will accept the conveyance, devise or bequest 
of real or personal property, in trust, for the endowment of scholarships in 
Union College, provided such property shall be sufficient to produce an in- 
come of at least one hundred and fifty dollars annually for each scholarship, 
upon the following conditions : 

1. The donor, and such individuals or public bodies as he may designate, 
shall have the right to designate the persons who shall enjoy the benefit of 
the scholarships ; such persons, however, to be subject to the ordinary disci- 
pline of the college, and to suspension and expulsion in the same manner a^ 
©ther pupils. 

2. In case a scholarship shall be vacant for one year, in consequence of 
the omission of the donor or those authorised by him to designate a person 
to fill it, such vacancy may be supplied by the Board of Trustees. 

3. The persons designated shall enjoy all the opportunities for instruc- 
tion and other advantages offered by this college to its pupils, and shall re- 
ceive their board in the commons provided by the trustees, free of all 
charges and expenses. 

4. Unless otherwise directed by the donor, the scholarships shall be design- 
nated by his name. 

At a meeting of the Board of Trustees held July 27, 1852, it was 

Resolved, That a sum less than $25,000 will be received in trust by this 

Board, as a foundation of a professorship, provided it is understood that the 

same shall be allowed to accumulate before said professorship is filled, until 

principal and interest together shall amount to twenty -live thousand dollars. 



130 « 

Resolved, That the founder or the visitor or visitors, of funds given for 
the foundation of professorships, scholarships, an observatory or cemetery, 
shall have free access to the books in which the same are kept ; and provided 
the founder of a professorship shall waive in his own behalf, and in behalf of 
the visitor or ^dsitors appointed by him, the exclusive right of nominating the 
candidates for filling the professorship or professorships so founded, he, or 
the visitor or \asitors appointed by him, shall be entitled to meet with the 
Board of Trustees, and to vote on all questions in relation to the filling or 
vacating of said professorships, or in relation to the use and management of 
said funds. 



I certify the foregoing resolutions are correctly copied from the Records 
of the Board of Trustees. 

LEia WILLABD, Register. 

RESOLUTIONS OF THE SENATE. 

Resolved, That the Comptroller, the Attorney General and John N. 
Campbell, one of the Regents of the University, have power to employ a 
skillful accountant, and send for persons and papers, to examine into the 
pecuniary afi"airs of Union College, and report upon the same to the next 
'LegislatuYe.—{Se7iate Journal 1851, page 526.) 

Resolved, That the commission appointed by the Senate on the 12th of 
April, 1851, to employ a skillful accountant to examine the pecuniary 
afi"airs of Union College^ and to report upon the same, be instructed, them- 
selves, or a majority of them, personally to visit the College, and re-exam- 
ine the proceedings heretofore had in relation thereto, and to investigate and 
report to the next Legislature upon the following subjects connected with 
said College : 

1. Whether the funds granted by the State to Union College have been 
duly applied to the objects specified in the respective grants : 

2. Whether the permanent funds so granted remain entire, and are safely 
invested ; 

3. Whether any funds belonging to the College have been applied to any 
personal purpose by the president, or any other officer or person ; 

4. Whether any and what losses have occurred in the management of 
the College, and the causes of such losses ; 

5. Whether the president or any other officer has^, while in the employ- 
ment of the College, participated individually in the profits of any loteries 
which were appropriated by the acts granting such lotteries to Union Col- 
lege ; and that the commission appointed by the resolution referred to, or a 
majority of them, be empowered to employ some person authorized by law 
to administer an oath to persons examined by such commission. 

On motion of Mr. Babcock, amended by adding the following : 
Resolved, That David Buel and Philip S. Van Rensselaer, two of the 
Regents of the University, be added to the persons appointed by the Senate 
on the 12th of April last, to perform certain duties in relation to the pecu- 
niary affairs of Union College 



INDEL 



A. 

Act of April 1 3th, 1813, relative to managers of lotteries, .... 107 
« " 13th, 1814, granting literature lottery, .... 100, 52 

" " 5th, 1822, to limit continuance of lotteries, 101, 52 

« " 13th, 1826, to enable the Mayor of the city of 

Albany to dispose of land, &c., 75 

Act for founding an Institute, 32 to 47 

Act for holding trust funds, 49, 50 

Acceptance of E. Nott to overture of May 30th, 1826, 115 

Agreement between President and Trustees of Union College, 81 

Agreement, tripartite, 81 

Amount granted Union College, 100, 104 

Amount due the institutions when bought out, 55, 79 

Amount paid Union College for lottery by A. Mclntyre and 

J.B.Yates, 52, 79, 114 

Amount paid E. Nott under stipulation of Jan. 4, 1826, 114 

" " by Yates & Mclntyre for lottery, 44, 53 

" " " " supervision, 45 

Amounts provided by E. Nott to purchase out institutions, .... 53 
" " " " to save Yates & Mclntyre, 16, 17, 54 

Amount paid institutions by E. Nott, „ 53 

Amount provided for Yates & Mclntyre by E. Nott, 16, 17, 57 to 64 

Answer to charge 1, "The truth has been concealed,*' 6, 62 

" " 2, Misapplication of funds, 8 

" " 3, College has received $802,320, 9, 39 

" " 4, Payments not made for am'ts claimed, 12 

'• " 5, Charged$150,000,forwhatcost$17,500, 12, 47 

" ' " 6, $111,000, wrongfully claimed, 15, 52 

" " 7, Use of college funds indiscriminately as 

his own, . o a a o 16, 57 

'^ "8, Duty to enquire after payments made to 

treasurer, 19, 65 

" " 8, All pavments called for as due Union 

College, 19, 75 

Application to E. Nott for assistance, 108 



132 INDEX. 



B. 



Bought out institutions, 53, 79 

Bound in honor to pay, 78, 79 

C. 

Certificate of R. M. Stratton, 9 

" " Edward James, 13 

" " J.Holland, 31 

u u Professor Gillespie, 44 

" " Chancellor Walworth, 48 

" " L. H. Willard, 48 

" " Jud2;e Paige, 50 

" " A. Holland, 50 

« " Attorney-General, ', 80 

Com'ment of lit. lot., 1st period, Jan. 26, '23, (Chan. Doc. 63, 118.) 
Close " " " May 31, '26, (Chan. Dog. 118.) 

Com'ment " " 2d period, consolidated, April 5, '26, 

(Chan. Doc. 170.) 
Close " " " " NoY, 10, 1827, 

(Chan. Doc. 170.) 
Com'ment of Fever Hos. Lottery, 3d period, Nov. 10, 1827, 

(Chan. Doc. 248.) 
Close " " " " June 2d, 1829, 

(Chan. Doc, 248.) 
Contingent residue, com'ced, July 15, '29, (Chan. Doc. 95, 96.) 

College, Hamilton, correspondence with, 79, 117, 

College, old purchased, 33, 35 

College and sites, cost of, 10 

College, Union, joined as plaintiffs vrithout their consent or 

knowledge, 80 

Commencement and close of Senator Beekman's report, 20 

Comparison with Smithsonian Institution, 22 

Compensation allowed by law to managers, 2 J per cent., . 52 

Contract, original, witli Vates k Mclnt.yre, 53, 104 

" for personal services, Jan. 24, i826, 54 

" " " May 39, 1826, 75 

" " " July 15, 1830, 76 

Concession, many have been granted, one more wanted, 67 

D. 

Demurrer of Yates & Mclntyre, 77, 78, 116 

F. 

Fund, President's, 45 

Fund, Dr. Nott's, 48 

H. 

Honor, bound in, to pay, 78, 79 



INDEX. 133 



I 



Indebted, Dr. Nott, largely, 15 

Institutions bought out by Dr. Nott, 53, 79 

Institute, act authorizing the same, 32 to 47 

L. 

Utters, Buel, Judge, to Chancellor Walworth, 4 

Campbell, Rev. J. N., to Dr. Nott, 2 

Ely, John, about refusal to pay, ^S 

Mclntyre, A., preliminary to stipulation, ^^^ 67, 75 

" thanks for aid, . « , 58 

« desires H. Yates to come to New- York 

as treasurer, 65 

« longs for the time when it can be known 

what E. Nott has done, 29, 30 

« bound in honor to pay, 7, 879 

« wants one more concession, 66 

" reasons for refusing to pay, 72 

Nott, E., concerning refusal to pay, 71 

" to Rev. Dr. Campbell, 3 

Van Rensselaer, P. S., to Chancellor Walworth, .... * 4 

Walworth, Chancellor, to Commissioners, 1 

Wright, Governor, to E. Nott, 37 

" " Yates & Mclntyre, 36 

Yates, H., sent to New- York as treasurer, QQ 

" " entered into partnership, Tuly 26, 1826,.. 72 

" " writes for money, . « 57 to 63 

" " preliminary to refusal to pay, 68 

" " refusal to pay, 68 

I Yates, J. B., if sustained can pay, , 57 

" " temerarious speculations, 57 

" " desires H. Yates as treasurer to come to 

New-York, 66 

Yates & Mclntyre, reasons for refusing to pay, 72 

" " preliminary overtures to stipula- 
tions^ 16, 66, 67, 75 

" '^ moneys advanced by E. Nott, 

16, 17, and 53 to 64 
Longs for the time when what E. Nott has done can be 

known, 29, 30 

Lottery, Literature, commenced Jan. 6, 1823, (Chan. Doc. §63.) 
" Albany land, mixed June 1st, 1826, (Chancery Doc. § 170.) 

" Literature, closed Nov. 10, 1827, (Chancery Doc. § 170.) 

" Fever hospital and Albany land, commenced Nov. 28, 

1827, (Chancery Docs. § 257a.) 
" <■' " closed June 2, 1829, (Chan. Docs. ^ 257a.) 

" Assumed amount of, $4,948,597, 80 

" Real amount of, $3,693,800, 80 

^' AmountrepaidYates&McIntvrebyU. Col. ,$126,037, 81 



134 INDEX. 

M. 

Managers . appointed, J. Holland, 31 

" " ;H. Yates, 66 

N. 

Nott, E. proposed to purchase out institutions, 53 

" authorized to assume supervision, 53 

" provided funds for Yates & Mclntyre, 16, 17, 54, 57 to 64 
" accepted of offer of Yates & Mclntyre of 6 yVo per cent, 76 

P. 

Payment, first of 6tVo ^^ade E. Nott, Sept. 2, 1829, (Chan. 

boc, § 264.) 

Payment more than 12 years after lit. lot. closed, 43 

Payments to E. Nott on private account, reported to trustees, 36 

Preliminary overtures to E. Nott, 16, QQ, 67, 75 

Purchased out institutions, 53 

Refusal to pay, 68, 72 

Repaid Yates & Mclntyre, by Union College, $126,037 excess, 81 

Reply of E. Nott to offer of Yates & Mclntyre, 76 

Report of Attorney General on lotteries, 80 

" finance committee, 31 

" Marcy, Wright and Cushman, 24, 119 

" Cushman and Paige, 117, 118 

Reports^ President Nott's Annual, .' . . 32, 33, 34, 35, 47 

" Treasurer, 100 

" E. Nott's, of amounts received for personal services, 

advances, &c., 36 

Resolution of trustees vesting E. Nott with full power, ... 53, 104 

" " concerning trust- fund, 48 

" " in extenso, p. 121. (See book of min- 

utes of trustees No. 3, p. 122.) 

S. 

Settlement with Yates & Mclntyre, Dec. 6, 1828, . . ." 110 

Stipulation for personal services of E. Nott of Jan. 4, 1826, .... 54 

" " " " May 30, 1826, 75,114 

" " " " July 15, 1830, 76,115 

Sworn schedule of Yates & Mclntyre, 40 

T. 

Tripartite agreement, , 81 

Trouble which change of contracts gave %Q 



KEPL Y 



or THE 



TRUSTEES OF UNION COLLEGE, 



TO 



CflARfiES BROUGHT BEFORE THE ASSEMBLY OF NEW-YORK, 

March 19, 1850; and before the 

0matc, on tl)e 12tl) of :3lpnl, 1S51, 

By the Hon. J. W. BEEKMAN. 



This reply was prepared and nearly all printed previous to the 
Meeting on the 1st of March, 1853, of the Commissioners 
appointed to examine and report on the charges against 
Union College and its officers, and would have been presen- 
ted to them, had they allowed the College and its officers to 
be heard in their defence, previous to the majority sending 
in with their sanction to the Senate, the exparte statements 
of the accountant employed by them. The resolution ap- 
pointing them, contemplated such a hearing of the parties 
accused ; it was twice claimed by the trustees ; it was repeat- 
edly promised by the Rev. John N". Campbell, chairman of 
the commission, but was, notwithstanding, refused; and a 
mass of matter, of which the trustees and officers were 
wholly ignorant and which they never were allowed to ex- 
amine, was sent forth to the world, to prejudice them and 
induce the worst impressions of their official conduct. 



'sToF CO,v- 



ALBANY: 

CHARLES VAN BENTHUYSEN, PRINTER. 

No. 407 Broadway. 
1853. 




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